Ioniq 5 launch puts Hyundai into the EV mix

Hyundai is undercutting the EV competition by pricing the base version of its Ioniq 5 electric crossover below rivals at Ford and Volkswagen, while offering a progressive walk up the trim ladder for buyers wanting more power, range and creature comforts.

The arrival of the Hyundai entry takes the market to a new level of competition as mainstream brands prepare for serious EV battle.

Last week, Hyundai delivered the first Ioniq 5 on the West Coast to an engineer at a space startup in Los Angeles, Yaron Alfi. The 2022 compact crossover, in Atlas White, is a long-range model to accommodate Alfi family road trips and camping, but Hyundai will also offer a standard-range base model in spring 2022.

Although surveys show that most EV buyers want range of more than 250 miles on a single charge, Hyundai is offering a single trim of the Ioniq 5 that comes in at 220 miles of range. The SE Standard Range, with 168 hp, starts at $40,925 with shipping, Hyundai said.

The standard-range model comes with a single motor driving the rear wheels. At launch, the base is the only trim in the U.S. to have the smaller, 58-kilowatt-hour battery pack.

The base Ioniq 5 is priced slightly below the base Volkswagen ID4 electric crossover, starting at $41,190. The base ID4 has greater range at 260 miles but won't charge as quickly on road trips. The base Ford Mustang Mach-E with 230 miles of range starts at $44,995, with shipping.

Both the ID4 and the Mach-E have been well received in the market, with reviewers giving the VW credit for value while the Ford gets the nod for a sporty ride. Early reviews for the Ioniq 5 have also been positive. The EV crossover battle is likely to come down to consumer preferences and availability.

The Ioniq 5 SE trim with the larger 77.4-kWh battery and 303 miles of range starts at $44,875 with delivery fees. That model also has one motor driving the rear wheels, but raises output to 225 hp.

The all-wheel-drive version of the SE with the extended-range battery adds a motor to the front wheels, bumping output to a combined 320 hp. But with the added weight and power, range falls to 256 miles, Hyundai said. The SE awd starts at $48,375 with shipping.

The midlevel SEL versions, often the sweet spot for consumers, are differentiated in the Ioniq 5 by the number of motors. The awd versions come with a considerable price bump since they add a front motor and a significant increase in horsepower.

The SEL trim starts at $47,125 with shipping for the single-motor version. Adding awd adds $3,500. The Limited starts at $51,825 with shipping and the dual-motor starts at $55,725. Notably, all the single-motor versions with the big battery offer 303 miles of range while awd drops that to 256 miles.

Hyundai said the Ioniq 5 "includes unexpected levels of standard equipment," including an 800-volt battery architecture that allows for ultra-fast charging. Other key standard features include a 12.3-inch infotainment system, a full safety suite and a driver-assistance feature for stop-and-go driving on highways, Hyundai said.

The Ioniq 5 also comes with two years of free, unlimited charging on the Electrify America network.

The Ioniq 5 and the Mach-E both offer standard-range and extended-range battery packs in multiple trims, along with distinctive styling. The longest-range Mach-E is the California Route 1 trim, with a single rear motor and 305 miles of range.

Although the Ioniq 5 is not a direct competitor to the Tesla Model Y in a comparison of base models, it could be one at the higher end. Tesla sold a standard-range version of the Model Y in the U.S. for a short time but currently uses the extended-range battery pack for its compact crossover.

The most inexpensive Tesla Model Y starts at $60,440 with shipping and has 330 miles of estimated EPA range, awd and ample horsepower. A dual-motor Ioniq 5 Limited would cost significantly less but also has significantly less range.

A more logical competitor for the Tesla crossover could be the Genesis GV60, coming next year. It's also built on Hyundai Motor Group's E-GMP electric platform but will be more luxurious and powerful than the Ioniq 5.

Genesis will also have an electric version of the G80 midsize sedan in the U.S. next year.

Hyundai will face sibling rivalry with the Ioniq 5 when the Kia EV6 launches in the first quarter. The EV6 is also built on the E-GMP platform and is a compact crossover with a sporty, hatchback design.

Kia said last week that the EV6 with a single rear motor and 77.4-kWh battery achieved 310 miles in EPA testing. The dual-motor versions are rated at 274 miles of range and the single-motor version with the standard 58-kWh battery comes in at 232 miles, Kia said in a press release.

In addition to ultra-fast charging from their 800-volt battery systems, the Hyundai Motor Group vehicles offer reverse-charging for powering home appliances during a blackout or an electric stove while camping.