Hyundai releases cheaper version of the Ioniq 5

The popular car maker has brought in a cut-price model to improve the affordability of an in-demand vehicle.

2023 Ioniq 5.

Hyundai has released a cheaper version of its Ioniq 5 electric SUV that will be eligible for Fringe Benefit Tax exemptions and EV rebates in some states.

The new model, which has a smaller battery, less power and a cloth interior, is priced from $64,500 plus on-road costs (roughly $67,000 drive-away).

It slots in underneath the existing rear-drive Dynamiq model, which has increased from $72,000 plus on-roads (roughly $75,500 drive-away) to $76,000.

The more powerful all-wheel drive, dual-motor version of the Dynamiq is now $80,500 plus on-roads, while the top-of-the-range Epiq is $79,500 in rear-drive guise and $84,000 in all-wheel-drive, dual motor trim.

The standard Ioniq has a 58kWh battery and 125kW motor, down from 77.4KWh and 168kW in the Dynamiq. Claimed range drops from 507km to 384km.

Hyundai has released a cheaper version of its Hyundai IONIQ 5. Picture: Supplied.

An extended range model, which has the larger battery and bigger motor, costs $70,500 plus on-roads.

The model release comes just a week after NSW Premier Chris Minns removed the state’s $3000 electric car subsidy and stamp duty exemption for electric cars, claiming that the incentives had driven up prices, as car companies effectively pocketed the subsidy for themselves.

“The evidence that we had from Treasury was that the subsidy was just being added to the sticker price, so you’re seeing (car) prices increase as a result,” he told reporters at the time.

Hyundai chief operating officer John Kett said any price increases were necessary to retain profit margins in the wake of increased transport and raw material costs.

“I’m looking at the product cost of our vehicles and that’s the return we need to make on them,” he said.

The new Ioniq model will appeal to buyers who salary-sacrifice their vehicle through work, as it is eligible for the Fringe Benefits Tax exemption on electric vehicles, which adds up to thousands of dollars in savings over the course of a typical lease.

The new model is eligible for an FBT exemption, saving buyers thousands of dollars over the term of a lease. Picture: Supplied.

Leasing experts say the tax breaks mean the Ioniq 5 will cost less to lease than comparable petrol-powered SUVs.

The new Ioniq 5 range now has a heat pump, battery heating system and battery conditioning as standard, which the company says improves efficiency and driving range as well as reducing charging times.

It also improves the performance of the airconditioning for both heating and cooling.

The tech was previously optional on the Ioniq range.

Hyundai has removed the digital side mirrors from the Epiq and is now offering them as a $3000 option, with a digital rear view mirror.

The digital side mirrors have been dropped from the standard features list and are now a $3000 option. Picture: Supplied.

Kett said the company had managed to secure more supply of the Ioniq 5, after it was initially limited to just 500 units a year.

“I think this year we’ll probably sell close to 2000 Ioniqs, depending on how many of the Ioniq 5 Ns we can deliver by the end of the year. Next year, we’re looking to double that again and then we’ll probably look to double it again,” he said.

The high-performance Ioniq 5 N secured 126 orders in a 12-hour “online pre-sale” event earlier this month, despite an eye-watering price tag of $111,000 plus on-roads. Buyers were required to place a $2000 deposit to secure a car.

Kett said the response to the N model, which can reach 100km/h in a claimed 3.4 seconds, was encouraging.

“It’s a pretty significant price so we’re happy with what we’ve got,” he said.

More than 100 customers signed up for the IONIQ 5N, despite a price tag of close to $120,000 drive-away. Picture: Supplied.

The brand will also introduce pricing changes to the Ioniq 6 sedan once current stock is exhausted.

Once that happens, Kett expects Ioniq sales to be split 70:30 between the Ioniq 5 SUV and the Ioniq 6 sedan.

He said the company would soon begin to push Ioniq as a stand-alone brand in the Hyundai stable, alongside its luxury Genesis offshoot.

“Some time in early November we will come out with our first ever Ioniq brand ad,” he said.

He said the ad would showcase the existing line-up but also give an insight into the look of the larger seven-seat Ioniq 7 SUV.

Following that, the arrival of the 5 N early next year will maintain momentum for the brand.

Originally published as Hyundai releases cheaper version of the Ioniq 5