Hyundai has decided not to market its most accessible Ioniq 6 model. Behind this astonishing choice, there are several reasons.
The Ioniq 6 is unquestionably one of the most anticipated electric cars of the year. As its marketing begins, a question arises: where has the “small battery” version of 53 kWh gone? Indeed, when announcing the electric sedan from Hyundai, the manufacturer hinted that two versions would be marketed, as is the case with the Ioniq 5 SUV which shares exactly the same technical architecture. The benefit for the consumer? The price of course. Because with the smallest of its batteries, the Ioniq 6 should have been displayed at a price close to that of the SUV, or around 45,000 euros. This tariff would also have made it possible to obtain the full rate ecological bonus (5,000 or 7,000 euros depending on the reference tax income) and to have one of the most promising electric sedans on the market at less than 40,000 euros.
The “cheap” Ioniq 6 will not be marketed in France
Those who were waiting for a credible and accessible alternative to the Tesla Model 3 will have to wait. Hyundai has confirmed to us that the entry-level version of its Ioniq 6 will not be sold in France, which explains the absence of this finish in the brand’s online configurator. The first consequence is obviously the increase in the entry ticket. To take advantage of the Ioniq 6, you will have to pay a minimum of 52,300 euros. The second is the consequence of the first decision, which is that Hyundai’s electric sedan will not be eligible for the ecological bonus. Why this choice ? And why decide to do without a model that could both attract new customers and compete with the Tesla Model 3?
business logic
The first element of the answer is to be found on the sales side… of the Ioniq 5. Indeed, the brand’s 100% electric SUV is available in two battery levels, a “small” 58 kWh and a “large” one of 77 kWh. However, according to Hyundai, 80% of sales of the Ioniq 5 are made on the long-range model. The French subsidiary of the Korean manufacturer therefore assumes that buyers are mainly oriented towards large capacity batteries, whether it is a private customer or a company.
So it doesn’t matter if sales go against the brand’s message. Indeed, as soon as the 800 V technology was adopted, Hyundai decided to communicate mainly on its ability to charge quickly (up to 239 kW), where the majority of the market revolves around 150 kW. In other words, no matter the size of the battery, what would matter is the time spent at the terminal. This is the main argument of the Ioniq 5 and it is even more significant on the Ioniq 6 which has better efficiency due to its aerodynamics.
However, if the small and the large battery are charged as quickly, the margins achieved on vehicles with better autonomy would be better. Hyundai therefore has every interest in favoring its most profitable model. So much for the sales pitch. But it is not the most important.
The importance of context
That Hyundai France decides to favor one version of the Ioniq 6 over another can be agreed. But why choose to do without the other completely? The answer to this question is not in the offices of Hyundai France, but 13,000 km away, in Korea. Indeed, the French branch of the manufacturer had to make a choice and a choice constrained by the group. In question ? The manufacturer’s production capacities. To put it another way, the current demand is greater than the supply. Hyundai, like many of its competitors, is mired in supply issues that particularly affect the semiconductor and battery market. This tension, combined with demand that is growing faster than production capacity, is forcing the Hyundai group to make choices in its car allocations.
That is to say that the manufacturer supplies as a priority the markets in which it will make the most profits. By extension, it produces as a priority the version of the vehicle that will be the most profitable.
These production constraints also lead to tensions between the different subsidiaries of the brand. Lionel French Keogh, the general manager of Hyundai France, does not say anything else when he affirms that ” within the same brand, there is competition between markets “. This is such that Hyundai does not even favor its domestic market. Indeed, today, the waiting time for the delivery of an Ioniq 5 would be more than two years in South Korea. It is 5 to 7 months in France. Here again, it is the logic of profitability that takes precedence. And it’s the one that led France to settle for around 2,000 Ioniq 6s for sale in 2023 when sales estimates would be more at the 3,000 level.
Was an Ioniq 6 with a 53 kWh battery relevant?
The global economic context, the difficulties of production and supply of raw materials, but also the (logical) choice to bet on the most profitable models have therefore led Hyundai to do without the Ioniq 6 in 53 kWh. Should we regret it?
For several reasons, the answer to this question is probably yes. The first is obvious, it is the price. There is more than 12,000 euros difference between a “bonus” Ioniq 6 and the current entry-level. But the 53 kWh version would also have had the merit of contradicting the current one-upmanship in terms of batteries. In fact, to increase the level of autonomy of their vehicles, manufacturers are content to integrate increasingly large batteries. However, the specificity of the Ioniq 6 is its efficiency. Thanks to its 800 V technology, but also to its aerodynamics, the electric sedan achieves very controlled consumption. We were able to verify this in our essay which will be published in the coming days. In fact, this Ioniq 6 (53 kWh) embodied a promise of efficiency at an “affordable” price. But currently, only Tesla and its Model 3 can say the same. This is, perhaps, the other regret of not seeing this option in the catalog. Today, and even more since the spectacular drop in the price of Tesla, the Ioniq 6 is much more expensive than its main competitor. For the humble observers that we are, this is a missed opportunity to attend a match at the top.
Unless maybe Hyundai’s decision isn’t final. As it stands, the French subsidiary does not intend to integrate the small battery into the catalog. But if the situation changes and Hyundai’s production capacities allow it, it may have to revise its plans.
