Prices slashed by $8000 for Hyundai Ioniq 5 and Kona Electric as cheaper rivals continue to flood Australia’s EV market

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Hyundai Australia has reduced the entry price of its Kona Electric small SUV and Ioniq 5 midsizer by a whopping $8000 in an effort to drive sales in an increasingly competitive electric market.

The 10 to 15-percent price cut applies to all grades of Kona electric and Ioniq 5, with the Kona now kicking off at $46,000 before on-road costs and the Ioniq 5 at $68,200. The flagship Ioniq 5N will not be discounted, however, and remains priced from $115,000.

The Kona small SUV is already Hyundai’s biggest seller, with Kona EV variants contributing roughly 10 percent of its sales total. But in recent times, cheaper rivals from China including the Atto 3 (from $39,990) and Geely EX5 ($41,990) have moved in. 

It’s a similar story for the Ioniq 5, which is now four years old and battling the Chinese-built Tesla Model Y, which still has a $10K-cheaper entry price than the Hyundai, kicking off at $58,900. 

Tesla shifted 5605 Model Y’s across May to take the title of Australia’s most popular car, while Hyundai sold a more modest 37 Ioniq 5s — around 0.7-percent of Tesla’s volume. Whether a price cut of $8000 will turn the tides for Hyundai’s plucky midsizer remains to be seen. 

New grades for Kona and more spec for Ioniq 5

Chasing Cars previously ran a base model Hyundai Kona Electric Standard Range on a long-term test, and found its level of specification for the price to be a chief criticism. 

But for MY27, the base model Kona Electric will actually lose equipment, dropping its V2L connection inside the cabin, the house-style charging cable and the battery’s heat pump – a decision which could result in less range depending on weather conditions.

Stripping back the base-grade Kona opens the floor for a new ‘Elite’ variant, which starts from $53,000 and positions above both the base model car ($46,000) and Electric Extended Range ($50,000).

It’s likely the Elite has been introduced in an effort to bolster Kona’s equipment list at a more BYD and MG competitive price point, leaving the costlier Kona Electric Premium ($60,000) and Premium N Line ($63,000) to contend with more contemporary rivals from Korea and Japan. 

The Elite is equipped with the larger 64.8kWh battery but adds extras such as power adjustable seating, leather upholstery, heated front seats and 19-inch alloys at a $3000 upcharge.

Model grade changes are less pronounced for the Ioniq 5, though it too sees its in-cabin V2L connection and home-style charging cable removed in the base grade RWD (now $68,200). 

Sitting above the base grade and mid-spec Elite ($73,200), the Premium N Line grade ($83,700) receives small spec changes, with leather sport seats with ‘N’ branding replacing the previous suede seats.

Stock of the updated Kona and Ioniq 5 grades will be available in showrooms this June.

With additional reporting by Lukas Foyle

Hyundai Kona Electric 2026: prices in Australia

All prices listed are before on-road costs.

• Electric Standard Range: $46,000
• Electric Extended Range: $50,000
• Electric Elite: $53,000
• Electric Premium: $60,000
• Electric Premium N Line: $63,000

Hyundai Ioniq 5 2026: prices in Australia

All prices listed are before on-road costs.

• Ioniq 5 RWD: $68,200
• Elite: $73,200
• Premium N Line: $83,700
• Ioniq 5 N with Vision Roof: $115,000