Affordable EVs are on the way. Hyundai plans to launch a cheaper electric vehicle, the IONIQ 2, that will sit below the popular IONIQ 5 SUV.
Hyundai is doubling down on its plans to become a top three EV maker by 2030. The Hyundai Motor Group (including Kia) plans to sell 3.6 million EVs by the end of the decade.
The automaker is off to a strong start with its first batch of dedicated EVs, including the IONIQ 5 and IONIQ 6.
Hyundai hit a new export record last month, driven by surging demand for EVs. The company says its EVs are “playing a major role” in helping them secure leadership in the global electric vehicle market.
The automaker’s EV exports have doubled over the past two years, reaching over 218,000 in 2022. However, Hyundai aims to take it a step further with key new models.
Hyundai to launch cheaper IONIQ 2 electric car
We already know Hyundai is developing its first three-row electric SUV. The Hyundai IONIQ 7 was spotted testing last month, revealing the big body electric SUV. It’s expected to officially debut next year.
According to Hyundai Europe’s VP of marketing, Andreas-Christoph Hofmann, the brand is developing a cheaper IONIQ 2 electric car.
Hofmann broke the news this summer following rival Volkswagen unveiling its ID 2all concept. The VW ID 2all will start at around €25,000 ($27,000) with up to 450 km (279 mi) range. It’s expected to go into production in 2025.
Hyundai is aiming for a similar price for the upcoming IONIQ 2. Hofmann told Automotive News, “Everybody in the industry knows the target of this kind of vehicle is 20,000 euros.”
The new EV is expected to have at least 250 miles range. It will be a part of Hyundai’s next-gen IMA platform revealed during its 2023 investor day. Hyundai says the IMA “is a significant advancement” over its current (E-GMP) platform that will help reduce costs.
Hyundai’s IMA will power 13 new Hyundai, Kia, and Genesis EVs through 2030. The platform can be used for “nearly all vehicle classes, ranging from small and large SUVs to pickup trucks.” It will also be used for a new flagship Genesis model.
Hyundai is one of many automakers aiming to launch cheaper EVs over the next few years. Tesla, Volkswagen, GM, Nissan, Stellantis, and more are all planning to release lower-priced EVs. Even startups, including Rivian and Lucid, are moving to lower-priced models.
Raw material costs are already down significantly over the past year or so and are projected to continue falling as more production comes online.
Lithium-ion battery pack prices hit a record low of $139/kWh last month, down 14%, according to BloombergNEF research.
Automakers continue adopting new tech and lower-cost battery chemistries like LFP. Other key battery minerals like lithium, nickel, and cobalt are expected to continue easing in 2024. This should help continue driving EV prices lower over the next several years.
Lower battery prices combined with improved manufacturing practices and designs to boost efficiency are expected to ease costs. BloombergNEF projects battery prices will fall to $113/kWh in 2025 and $80/kWh in 2030.
Meanwhile, Hyundai is already developing affordable EVs. It announced the new 2024 Kona Electric will be one of the most affordable EVs in the US, with starting prices under $33,000.
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