Hyundai’s IONIQ 5 electric SUV has taken the market by surprise, attracting a new group of buyers who would typically stick with premium brands. The success of the IONIQ 5 has even surprised company leaders like Michael Cole, President, and CEO at Hyundai Europe, who believes that “brand loyalty doesn’t seem to be as strong in EVs.”
Hyundai, known as a “cheap” car brand earlier, has transformed itself in the EV era, focusing on innovation, quality interior and exterior designs, and state-of-the-art technology. The IONIQ 5 was designed with a progressive approach that looked back to the brand’s past, in particular, its first unique vehicle, the Pony. However, the Electric Globular Modular Platform (E-GMP) is what brings the IONIQ 5 to life, offering up to 310 miles range (500 km), 800V ultrafast charging (18 minutes), vehicle-to-load capabilities (V2L), and more.
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Hyundai’s radical approach has paid off, with the IONIQ 5 winning over customers from premium brands. Although the electric SUV is priced above Hyundai’s typical range, it is about in line with the competition, starting at $41,500, and sales have been strong.
The IONIQ 5 was followed up by the IONIQ 6 electric sedan, which was officially unveiled last July and placed among the top two models on Fueleconomy.gov’s 2023 top 10 list with the Lucid Air. IONIQ 5 and IONIQ 6 sales reached over 100,000 last year, and Hyundai is planning to release its larger IONIQ 7 SUV next year.
The success of the IONIQ 5 has given Hyundai the confidence to release its larger SUV, as Cole explains, “With Ioniq 7 there was a bit of hesitation a year ago prior to Ioniq 5 about whether it was a car for Europe – but after the success of the Ioniq 5, we now 100 per cent think it’s a car that we can sell in Europe, and we will capture some premium brand customers with it.”
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Hyundai is not planning to change its image altogether to a premium one. Instead, the company believes it can reach an entirely new customer base with its EVs. The IONIQ 5’s sleek design and advanced features are attracting a new group of users, and brand loyalty doesn’t seem as strong in EVs, with several new electric models pulling sales from premium brands.
Hyundai’s success with the IONIQ 5 demonstrates that quality design, innovation, and state-of-the-art technology are essential components of the EV era. As more consumers embrace EVs, automakers will need to innovate and focus on design to attract new customers and remain competitive in the market.