Hyundai Motor to lower interest rates on select EV models to counter import price competition

Hyundai Motor will lower installment interest rates on select EV models as Korean automakers step up efforts to counter aggressive price competition from foreign rivals, including Tesla.

Hyundai Motor's EVs are seen in this photo provided by the company. From left, the Ioniq 5, Ioniq 6 and Kona Electric [HYUNDAI MOTOR]

Hyundai Motor will lower installment interest rates on select EV models as Korean automakers step up efforts to counter aggressive price competition from foreign rivals, including Tesla.

Under the move, Hyundai Motor will lower interest rates on its low-interest financing program for the Ioniq 5, Ioniq 6 and Kona Electric. The rate will fall from 5.4 percent to 2.8 percent, a reduction of 2.6 percentage points.

The promotion offers a 36-month installment plan in which customers can return the vehicle at the end of the term and settle the deferred payment with the guaranteed resale value. Customers who wish to keep the vehicle can either pay the remaining amount in a lump sum or extend the installment plan.

Under this program, the Ioniq 5 — a compact SUV — can be driven for 36 months with monthly payments of 310,000 won ($210), based on the Standard model.

This assumes maximum discounts of up to 3 million won through trade-in benefits and early bird incentives, as well as the application of government EV subsidies. The monthly payment is 50,000 won lower than before.

Using the same terms, the Ioniq 6 midsize electric sedan sees a drop in monthly payments from 330,000 won to 260,000 won, while the Kona Electric small SUV drops from 240,000 won to 230,000 won.

Kia's EV lineup [KIA]

Hyundai Motor said the updated rates result in interest savings of around 2.5 million won for the Ioniq 5 and Ioniq 6, and about 2.1 million won for the Kona Electric.

This announcement comes one day after Kia, a Hyundai Motor Group brand, introduced price cuts of up to 3 million won on the EV5 and EV6 and reduced installment rates for the upcoming EV3 and EV4 models.

Industry watchers expect over 20 EV models to launch in Korea this year, leading to increasingly fierce price competition as automakers vie for market share.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY NAM YOON-SEO [lim.jeongwon@joongang.co.kr]