Ford pulled out a discount card of up to 10 million won in the U.S. market, and Tesla lowered the price of its flagship electric vehicle Model Y in Korea by about $2,000 in line with the subsidy standard.
According to related industries on the 22nd, Ford reduced the price of its electric Mustang Mach-E 2023 model by $3,100 to $8,100 (about $4.14 million to 10.81 million won) per trim in the U.S. market. As a result, the price of the basic model fell from $42,995 to $39,895 per trim. Vehicles subject to discounts were limited to 2023 models, but analysts say that as inventory vehicles surged due to failure to meet detailed requirements of the U.S. Inflation Reduction Act (IRA) from this year due to the failure to receive a $3,750 tax credit, they took out an unconventional discount card.
Hyundai Motor is also striving to expand sales of electric vehicles by increasing sales incentives (incentives) that are paid to dealers in the U.S. market. Hyundai Motor Group’s electric vehicles, including Hyundai Motor, Kia Motors and Genesis, are not receiving tax credits due to the failure of all Hyundai cars to meet the IRA requirements except for fleets sold to corporations. According to the industry, Hyundai’s Ioniq 6 is reportedly burdened with up to 7,500 dollars in incentives per unit. Although Hyundai Motor does not cut the price of its vehicles like other companies, it lowered the price by increasing incentives.
Competition is also fierce in the Korean market to cut prices for electric vehicles. In particular, the Ministry of Environment’s full subsidy payment standard has been lowered from less than $45,000 last year to less than $42,000 this year, leading to price cuts. Hyundai lowered the prices of the Ioniq 5 and the Ioniq 6 by $2,000, and the Kona electric car by $800. Kia lowered the price of the EV6 by $3,000, and KG Mobility cut the price of the Torres EVX by $2,000. Overseas companies are also lowering their ransom. Tesla, which made a splash with the Chinese Model Y last year, lowered the price of its rear-wheel drive (RWD) from $53,000 to $52,000. In addition, other imported car brands such as Volkswagen and Polestar have also lowered their prices in accordance with the changed subsidy standards. Volkswagen lowered the sale price of its electric vehicle ID.4 Lite from 56.9 million won to 54.9 million won, and Polestar lowered the price of its Polestar 2 long-range single-motor from $53,000. “In recent years, as the growth of the electric vehicle market has rapidly declined, prices are emerging as an important variable,” an industry source said. “It is a structure in which competition for price cuts is bound to continue for the time being.”
JULIE KIM
US ASIA JOURNAL
