The Hyundai Kona Electric, already one of the most affordable EVs in the US, was the top-selling electric vehicle priced below MSRP last month. Volkswagen’s ID.4 was second, with Hyundai’s IONIQ models and Kia’s EV6 also selling well below MSRP.
Hyundai Kona Electric tops EVs selling below MSRP
Electric vehicles, like the Hyundai Kona electric, and larger trucks and SUVs accounted for most models priced below MSRP, according to a new study from online auto research firm iSeeCars.
As automakers like Hyundai and Kia look to level the playing ground as their EVs do not qualify for the federal tax credit (only through leasing), new incentives are driving prices under MSRP.
Hyundai introduced the 2024 Kona Electric in December as one of the most affordable EVs in the US, with starting prices under $33K. The new Kona EV is bigger, features a bold new design, has more range, and charges faster than its predecessor.
According to the study, the Hyundai Kona Electric sold for an average of $36,211 in January. That’s 4.6% below its average MSRP of $37,964.
| Rank | Model | Price vs MSRP (January 2024) |
Avg price | Avg MSRP |
| 1 | Hyundai Kona Electric | -4.6% | $36,211 | $37,964 |
| 2 | VW ID.4 | -3.6% | $48,740 | $50,547 |
| 3 | Ford F-150 (hybrid) | -3.3% | $82,132 | $84,910 |
| 4 | Kia EV6 | -2.5% | $52,004 | $53,315 |
| 5 | Hyundai IONIQ 6 | -2.4% | $47,691 | $48,861 |
| 6 | Nissan Maxima | -2.2% | $42,234 | $43,163 |
| 7 | Chrysler Pacifica (PHEV) | -2.0% | $53,263 | $54,329 |
| 8 | Nissan Ariya | -1.9% | $50,751 | $51,734 |
| 9 | Hyundai IONIQ 5 | -1.9% | $50,477 | $51,455 |
| 10 | VW Arteon | -1.8% | $47,852 | $48,734 |
Volkswagen’s ID.4 electric SUV was second on the list, selling for 3.6% below MSRP with an average price of $48,740.
In third was Ford’s F-150 hybrid, with average selling prices 3.3% below MSRP. Ford is cutting production of its electric F-150 Lightning pickup, citing “slower than expected” demand.
Kia’s EV6 was fourth (-2.5%), while Hyundai’s IONIQ 6 (-2.4%) and IONIQ 5 (1.9%) were among the top ten.
Incentives are driving lower prices
Hyundai and Kia are running significant EV incentives to stay competitive in the US (their largest market).
On top of a $7,500 EV lease bonus, Hyundai has offered major deals, including an extra $7,500 “Final Pay Incentive” that can be stacked for up to $15,000 in savings on the IONIQ 5.
The 2023 Hyundai IONIQ 5 (starting at $41,450) was already cheaper than the Ford Mustang Mach-E ($42,995), Nissan Ariya ($43,190), and Toyota bZ4X ($42,000) before incentives. It’s no wonder why Hyundai (including Kia) surged past Ford and GM to become the second largest EV maker in the US, behind only Tesla last year.
Last month, Hyundai introduced a $7,500 purchase incentive on the 2024 IONIQ 6, making the electric sedan nearly $10K cheaper than the new Tesla Model 3.
According to Hyundai’s website, the automaker is still offering $7,500 in Retail Bonus Cash on all 2024 IONIQ 6 models and 2024 Kona Electric models. Meanwhile, the 2024 Hyundai IONIQ 5 SE RWD is eligible for a $7,500 Bonus Cash offer.
Hyundai Motor America CEO Jose Munoz told Automotive News last week that the automaker’s first EV and battery plant in the US will open ahead of schedule this year in GA. It could open as soon as October.
Munoz said Hyundai is “pulling ahead” because everyone knows how important the EV tax credit is. Hyundai and Kia accounted for about 8% of EVs sold (~117K models) in the US last year, according to research from BloombergNEF.
If you are in the market for a new Hyundai EV, now may be the time to start shopping with some of the lowest prices since launching. You can use our links below to find great deals on Hyundai, Kia, and VW’s electric vehicles at a dealer near you.