Hyundai Cuts $7,000 Off Its Smallest Electric Vehicle, Yet It Remains $10,000 More Expensive Than Its Chinese Competitor | Carscoops

      Sales of the Hyundai Inster and Kona Electric have been sluggish in Australia, and reducing prices might help stimulate demand.

      Hyundai has made adjustments to Inster pricing, but a significant price difference remains.

      The Kona Electric is experiencing price changes throughout the Australian market.

      Competition from other electric vehicles persists despite the recent price adjustments.

      As electric vehicles increasingly enter Australia’s crowded new car market, competitive pressure is rising, especially from affordably priced models from China. To address this, Hyundai has implemented substantial price reductions for two of its notable EV models, the compact Inster and the updated Kona Electric.

      Beginning with the small Inster, which we reviewed a few months ago, prices have been reduced, allowing buyers to save over AU$7,288 (approximately US$4,900 at current exchange rates).

      The base model, Inster Standard Range, now starts at AU$35,990 (US$24,200), including all on-road costs. Even after this cut, it remains more expensive than the base BYD Atto 1, which starts at just AU$26,500 (US$17,800) in standard trim or around AU$30,650 (US$20,600) for the Premium model.

      Despite its practicality and well-utilized space along with a solid feature set, the Inster has not achieved strong sales, mainly due to its high pricing. From June to December last year, only 467 units were sold in Australia, according to CarExpert data.

      Significant price cuts have also been applied to the Hyundai Kona Electric and Hybrid. The starting price for the Kona Electric Standard Range has been lowered to AU$45,990 (US$30,900), representing a drop of over AU$13,000 (US$8,700). The Kona Hybrid has also seen a significant price cut, reducing its cost to AU$39,990 (US$26,900).

      With these adjustments, the cost of the Kona Electric aligns closely with the Geely EX5, which starts just above AU$44,000 (US$29,500). Moreover, Hyundai reduced the price of the Kona Electric Extended Range by AU$13,357 (US$9,000) to AU$49,990 (US$33,600), inclusive of all on-road fees.

      The Kona Electric Premium has been similarly reduced by AU$13,857 (US$9,300), meaning it is no longer priced from AU$59,990 (US$40,300).

      The sales numbers highlight the difficulties faced by Hyundai, with only 541 Kona Electrics sold locally last year, accounting for just 2.4 percent of total Kona sales, which fails to meet the brand’s expectations.

      By lowering the price point, Hyundai not only keeps the Kona Electric competitive against newer Chinese models but also makes room for their upcoming Elexio.

      Manufactured in China and starting from AU$59,990 (US$40,300), the Elexio bridges the gap between the Kona Electric and the more premium Ioniq 5. Hyundai markets it as a competitor to the Kia EV5, BYD Sealion 7, and Tesla Model Y, thereby creating a more defined EV lineup with a clearer hierarchy.