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Hyundai is cutting EV prices
On October 7, 2025, Hyundai announced massive price cuts for several electric cars, or EVs, in the Australian market. The most significant price drop was on the 2023 Model Year MY23 IONIQ 6 Epiq sedan, which saw its final drive-away price cut by $34,142.02 AUD.
The original price of this top-level model was $94,132.02 AUD, but it is now selling for $59,990 AUD. This specific discount offers a massive 36% reduction and is available for a limited time only, with only 115 existing sedans remaining. It is designed to clear older inventory before the arrival of new models.
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Australian IONIQ 6 model reductions
The discount applies to all three older MY23 IONIQ 6 versions in Australia. The IONIQ 6 Techniq had the second-largest cut, dropping its new price to $54,990 AUD from its original price of $88,579.02 AUD, a reduction of $33,589.02 AUD.
The starter IONIQ 6 Dynamic MY23 was reduced by $27,564.02 AUD, lowering its price from $77,554.02 AUD to $49,990 AUD. These discounts are between 35% and 38% off the full drive-away cost. The main goal is to sell all the older 2023 cars by the end of Q4 2025.
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Official U.S. pricing strategy for 2026 models
Hyundai repositioned the 2026 IONIQ 5 lineup in the U.S. to increase competitiveness by lowering the MSRP. On October 1, 2025, Hyundai Motor America announced significant price cuts for the new 2026 IONIQ 5 models.
The company lowered the Manufacturer’s Suggested Retail Price (MSRP) by up to $9,800 USD. The 2026 IONIQ 5 SE RWD Standard Range now starts at a MSRP of $35,000, which is $7,600 less than the 2025 model’s MSRP of $42,600. The average price cut across all nine different 2026 IONIQ 5 trims is a huge $9,155 USD.
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US price reductions on IONIQ 5 trims
The most considerable MSRP reduction for the 2026 IONIQ 5 in the U.S. was for the SEL trims, available in both RWD and AWD configurations. The 2026 IONIQ 5 SEL RWD model received the most significant discount of $9,800 USD. Its new MSRP is $39,800, down from the 2025 model’s $49,600.
The IONIQ 5 SEL AWD also received a $9,800 USD price cut, changing its MSRP from $53,100 to $43,300. The RWD Limited model’s price was reduced by $9,225 USD, dropping from $54,300 to $45,075. These new prices are even bigger than the old federal EV tax credit that ended.
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Incentive for remaining 2025 IONIQ 5 models
Hyundai is offering a direct cash incentive to keep the 2025 IONIQ 5 models competitive after the federal EV tax credit is no longer available. Hyundai is offering a direct $7,500 USD cash incentive that remains applicable to all remaining 2025 IONIQ 5 models through at least the end of October 2025.
This money is available to customers who purchase or lease a car, effectively replacing the $7,500 federal tax credit that expired on September 30, 2025. Randy Parker, Hyundai’s North America CEO, confirmed that the company is paying for this rebate itself.
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Reason for U.S. price strategy official statement
Hyundai’s North America Chief Executive stated the company’s position on the competitive market and price adjustments.
Randy Parker, Hyundai’s North America chief executive, gave an official statement on October 1, 2025: “While the $7,500 EV credit has expired, our electrification strategy has always extended beyond incentives… we remain steadfast in our commitment to affordability, quality, and customer care.”
This shows the company’s plan is not just about tax breaks. Hyundai’s sales show strength: electric cars made up 38% of the company’s U.S. retail sales in September 2025, helping them set a new sales record.
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Global price promotions mid-2025
Aggressive global promotions for Hyundai and Kia began earlier in 2025 to boost sales volume outside the U.S.In July 2025, Hyundai and its sister company, Kia, launched major sales promotions in six key global markets. In some of these markets, discounts reached nearly $17,000 USD.
For example, in Serbia, Hyundai offered up to 15,000 euros ($17,500 USD) off the IONIQ 5 and IONIQ 6 models. In Thailand, discounts went up to 12 million won ($8,900 USD). This push came after the U.S. raised tariffs on Chinese-made EVs to 100% in 2024, sharpening global competition.
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Non-IONIQ EV price reductions in Australia
The price slashes in Australia were not limited to the IONIQ 6 but also included the newer Ioniq and Kona Electric models. The Kona Electric Standard Range received a price cut of $9,189.02 AUD, bringing its drive-away price down to $49,990 AUD from $59,179.02 AUD.
The small, new Inster electric hatchback also got discounts up to $3,925.02 AUD on its Extended Range model. The cheapest Inster Standard Range is now priced under $40,000 AUD at $39,990 AUD (a saving of $3,320.02 AUD). These special deals are good for new orders delivered before December 31, 2025.
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IONIQ 5 price reduction in Australia
The popular IONIQ 5 also saw a significant price reduction for the base variant in the Australian market’s Q4 2025 promotion. The IONIQ 5 Standard Range model received a price cut of $9,779.02 AUD as part of the special offers announced on October 7, 2025.
This lowered its drive-away price from $75,769.02 AUD to a new price of $65,990 AUD. This reduction is the most significant discount on new-stock Hyundai EVs in Australia, representing a 13.0% drop. The lower prices apply to both cars already at dealers and to new orders, helping to boost sales quickly during the fourth quarter.
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Overall EV sales performance Q3 2025
The price adjustments follow Hyundai’s reporting record-breaking EV sales figures in the third quarter of 2025. Hyundai’s total EV sales for Quarter 3 Q3 of 2025 jumped by a massive 100% compared to the same time last year.
Specifically, IONIQ 5 retail sales increased by 151% compared to the same month in the previous year. The company’s total sales across all vehicles increased by 7% to 57,435 units in September 2025, which set a new record high. This strong sales performance enables the company to cover the new, significant customer incentives with sufficient funds.
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Production and affordability goal
Increased U.S. production and lower manufacturing costs are allowing Hyundai to pass savings directly to consumers. The price cuts are made possible by building more cars, especially at Hyundai’s new Metaplant in Georgia, U.S. This factory aims to produce 300,000 units of electric vehicles annually.
Building cars in the U.S. helps Hyundai avoid some tariff costs. By starting the 2026 IONIQ 5 at $35,000 MSRP, the company is now offering one of the most affordable full-size electric options in the U.S., priced just below models starting at $34,995.
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Competition in the EV market
The aggressive price strategy is aimed at maintaining competitiveness against key rivals like Tesla and other new EV players. The U.S. price cuts help the IONIQ 5 compete directly with the Chevrolet Equinox EV, which starts at $34,995 including fees.
The significant Australian discounts are challenging strong sellers like the Tesla Model Y and the BYD Seal. In Australia, September 2025 was a record month, with over 12,000 EVs sold, meaning electric cars now make up 11.3% of the entire new car market. This high level of competition requires Hyundai to adopt an aggressive strategy.
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Technical specifications for IONIQ 5 SE RWD
The discounted 2026 IONIQ 5 SE RWD Standard Range model offers a specific combination of power and range for a lower base price. The new starting Manufacturer’s Suggested Retail Price MSRP for the base 2026 IONIQ 5 SE RWD Standard Range is $35,000, a reduction of $7,600 USD from the 2025 model.
The total starting price for this variant, including the required $1,600 USD destination charge, is $36,600. This model is equipped with a 125 kW (168 hp) electric motor and utilizes the smaller 63-kWh battery pack. The price cut makes it a direct competitor with an estimated range of 245 miles.
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Technical specifications for IONIQ 6 Epiq
The 2023 IONIQ 6 Epiq, which received the most significant price cut, is the top-of-the-line, high-performance variant. The IONIQ 6 Epiq 23MY, discounted by $34,142.02 AUD, is the flagship model with dual motors and all-wheel drive.
Both the IONIQ 5 and IONIQ 6 are built on Hyundai’s advanced 800-volt Electric Global Modular Platform E-GMP. This special platform enables super-fast charging, allowing the battery to charge from 10% to 80% in as little as 18 minutes when connected to the correct public charger. This technical feature remains a significant advantage, despite the substantial price drop.
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Lease offers for U.S. customers
Hyundai is using attractive lease deals on the 2025 IONIQ 5 to drive sales volume and market share in the U.S.In addition to the $7,500 cash incentive for car buyers, Hyundai is also offering attractive lease options for the 2025 IONIQ 5.
Lease payments start as low as $249 per month for the SE RWD Standard Range trim. The long-range SE RWD is available for only $259 per month, and that version offers a driving range of up to 318 miles. These low monthly payment deals are a smart way to attract customers who prefer renting the car and returning it later.
Want to see how Hyundai plans to shake up the EV game? Check out the upcoming Hyundai IONIQ 3 could revolutionize EVs.
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Last updated: October 8, 2025
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