Hyundai Motor Co (005380.KS), a South Korean automaker, unveiled its first electric sedan, the Ioniq 6, on Thursday in an effort to gain a larger share of the electric vehicle (EV) market, which is currently dominated by Tesla Inc.
The Hyundai Motor Group, which consists of Hyundai Motor, its sister company Kia Corp (000270.KS), and premium brand Genesis, plans to release more than 31 electric models by 2030 in order to secure a projected 12 percent market share for EVs worldwide. One of these models is the Ioniq 6.
In order to compete head-to-head with Tesla’s best-selling Model 3 sedan, Hyundai’s sedan will increase its electric vehicle range past that of its current crossovers and SUVs.
According to market researcher SNE Research, Hyundai and Kia were already the second-largest EV shippers outside of China in January to May of this year, with a combined 13.5 percent market share, trailing only Tesla at 22 percent.
For the South Korean market, the Ioniq 6 will cost between 55 million won ($41,949.51) and 65 million won.
According to Lee Jae-il, an analyst at Eugene Investment & Securities, “The Ioniq 6 will be able to compete with Tesla in the volume EV sedan sector, considering its competitive pricing and long driving range.”
Due to multiple price increases by Tesla, the Ioniq 6 may benefit from its pricing in the EV sedan market, he continued.
The range of the Hyundai electric sedan will be
We increased the number of batteries in each pack while still using the same (battery) cell chemistry to significantly increase energy density, according to Kim Yong Wha, an executive vice president at Hyundai.
It will start production at Hyundai’s Asan plant in South Korea later this year and will be offered with two battery pack options: 53 kWh and 77.4 kWh.
South Korea will be able to purchase the Ioniq 6 this year, and the US market launch is anticipated for the first quarter of 2019.
Hyundai announced that starting in 2019, the Ioniq 6 will use batteries from LG Energy Solution (373220.KS), SK Innovation (096770.KS), and SK On.
The launch follows Hyundai’s announcement.
