Hyundai's Response to the Intensifying EV Price War

KatadataOTO – Hyundai faces challenges with the presence of various Chinese brands offering competitively priced electric car alternatives.

The Ioniq 5 and Kona Electric cars must compete with a range of new products offered to consumers today.

Furthermore, several Chinese manufacturers have decided to cut the prices of their electric cars, especially during the GIIAS 2025 event, to attract buyers.

In response, PT Hyundai Motors Indonesia (HMID) has affirmed that it will not follow this scheme.

Photo : Hyundai

According to Hyundai, a price war will have a negative impact on the resale value in the used car market.

“Some used car dealers feel their stock is currently undervalued compared to the price they paid for it,” said Fransiscus Soerjopranoto, Chief Operating Officer of PT HMID in Tangerang some time ago.

Therefore, he revealed that Hyundai will focus on services to make it easier for consumers, from purchasing to vehicle maintenance.

Frans further stated that a price war could have a negative impact on the industry in the future.

“In a price war, besides the used (car) prices dropping, the profitability of our dealers or the brand in general will certainly decrease,” he asserted.

Furthermore, cheap electric cars are not necessarily accessible to first-time buyers.

“In the lower segment, financing must be strong. So if the approval rate is low, the newly introduced products may not secure credit financing,” he said.

As a result, these cheap cars cannot be sold in the targeted volumes.

Frans highlighted sales growth for cars in the upper-middle and premium segments.

“So the Santa Fe and Palisade at our company have recorded quite good sales,” he concluded.

Photo : Hyundai USA

For your information, Hyundai markets three electric car models: the Ioniq 5, Ioniq 6, and Kona Electric.

It is undeniable that sales of these three models have declined, especially since the arrival of various Chinese brands.

In terms of wholesales (distribution from factory to dealer), the Ioniq 5, which was often in the top 10, has been pushed out, replaced by new products from China.