Here is the most professional and authoritative series of Korean cars and Korean car market content on the whole network, "Korean Trends" No. 1235.
Hyundai's IONIQ 5N, a high-performance electric car, has garnered explosive attention among enthusiasts after it was exported to the U.S. last month. For example, in a North American dealership, the maximum price increase of IONIQ 5N was $20,000, which caused controversy.
The IONIQ 5N sold by dealers in Ontario, USA, has a list price of $87,685. Although it is not known if the contract is actually signed with the user at this price, the price itself attracts attention. Hyundai Motor U.S.'s suggested consumer price to dealers is USD 67,685, which means that the dealer price is USD 20,000 higher than the manufacturer's suggested price.
You know, the price of $87,685 is more expensive than the $82,400 of the Porsche 718 S. The Escondido dealership in California also sold the IONIQ 5N for $78,155, $10,000 more than the regular price. If other incidental costs, including taxes, are included, the total cost would be $86,742.
California, which has the highest share of electric vehicle sales in the United States, has 1 in 4 new cars that are electric. The average income is high, the purchasing power is high, and the population is the largest. As a result, the California state government has imposed the toughest environmental restrictions among the 50 states in the United States, and electric vehicles are popular.
In addition, California is a region with a well-developed automotive culture, and there is a high demand for high-performance vehicles. Against this background, it can be understood that American Hyundai dealers put the label of a luxury premium car on the IONIQ 5N. So the starting price is more than $80,000. Although it has the performance and driving pleasure that surpasses that of high-performance sports cars in its class, eco-friendly electric vehicles with no tailpipe emissions are also attractive.
Hyundai Motor North America does not recommend dealers to sell at a price higher than the manufacturer's offer. Because brand loyalty and re-purchases can also have a negative impact if upselling.
Hyundai Motor Group's vehicles have been sold at a markup in North America before, and during the pandemic, Kia's large SUV Telluride exploded in popularity, and there was a $5,000 price increase. In the U.S., there is a difference between the suggested consumer price and the actual dealer selling price.
In particular, when demand exceeds supply, dealers will increase prices. Although it is not sold according to the manufacturer's guide price, it will inevitably be criticized by consumers. Therefore, it has been argued that this type of transaction should be abolished and replaced by a clear real price system for online sales.
In the Korean market, the IONIQ 5N was launched in September last year and has sold a total of 325 units as of March this year. In January and February, when subsidies were not provided, only eight units were sold, and sales were not satisfactory. There is still a long way to go before Hyundai Motor aims to sell 100 units a month.