Hyundai Cuts Prices for 2026 Ioniq 5
Hyundai has announced a significant price reduction for the 2026 Ioniq 5 as part of its strategy to maintain momentum in the electric vehicle (EV) market after the expiration of the $7,500 federal tax credit. The automaker revealed that the 2026 Ioniq 5 will be cheaper by an average of $9,155, with some trims seeing reductions of up to $9,800. This bold move will make the Ioniq 5 even more competitive against rivals like the Tesla Model Y and the Chevy Equinox EV.
The Standard Range RWD version of the 2026 Ioniq 5 will now start at $35,000, a significant decrease from the previous $42,600 price. This pricing makes the 2026 Ioniq 5 an attractive option in the growing EV market.
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Full Pricing for the 2026 Hyundai Ioniq 5
Hyundai has provided the full pricing breakdown for the 2026 Ioniq 5 across various trims:
| Model | Motor | 2025 MSRP | 2026 MSRP | Price Reduction |
|---|---|---|---|---|
| SE RWD Standard Range | 125 kW (168 hp) | $42,600 | $35,000 | $7,600 |
| SE RWD | 168 kW (225 hp) | $46,650 | $37,500 | $9,150 |
| SEL RWD | 168 kW (225 hp) | $49,600 | $39,800 | $9,800 |
| Limited RWD | 168 kW (225 hp) | $54,300 | $45,075 | $9,225 |
| SE AWD | 74 kW + 165 kW (320 hp) | $50,150 | $41,000 | $9,150 |
| SEL AWD | 74 kW + 165 kW (320 hp) | $53,100 | $43,300 | $9,800 |
| XRT AWD | 74 kW + 165 kW (320 hp) | $55,500 | $46,275 | $9,225 |
| XRT AWD with tow hitch | 74 kW + 165 kW (320 hp) | $55,950 | $46,725 | $9,225 |
| Limited AWD | 74 kW + 165 kW (320 hp) | $58,200 | $48,975 | $9,225 |
The Ioniq 5 is Hyundai’s best-selling EV and among the most popular electric crossovers in the U.S. It boasts impressive features such as more than 300 miles of range on some trims and fast-charging capabilities. Additionally, the new model now comes with a Tesla-style charging plug for easy access to Superchargers.
Hyundai’s Post-Tax-Credit Strategy
Following the expiration of the $7,500 tax credit on September 30, Hyundai has adjusted its pricing strategy to maintain its competitive edge. In addition to the price cut for the 2026 Ioniq 5, Hyundai is continuing to offer the $7,500 cash incentive for the 2025 Ioniq 5 models through October.
These changes reflect Hyundai’s commitment to keeping its EVs affordable, leveraging cost efficiencies from increased sales volume and ongoing market growth. The automaker also mentioned that the strategic price cuts are part of its long-term plans for the EV market, with continued U.S. production at Hyundai’s Metaplant America facility.
Sales Momentum and Future Projections
Hyundai’s sales momentum has been impressive, with Q3 EV sales doubling compared to last year. The Ioniq 5 accounted for nearly 21,999 sales during this period, a substantial increase from the previous year’s 11,590 sales. In September alone, Hyundai sold 8,408 Ioniq 5s, marking a 152% year-over-year growth.
Despite projections for a slowdown in EV sales, automakers are employing strategies like discounts and long-term offers to keep sales up. Hyundai’s approach signals a longer-term strategy, positioning the Ioniq 5 to remain one of the most attractive EVs in the market, even as tax incentives fade away.
