[Star Trend] Spread of 'price destruction' from Tesla... the rapid pace of the era of EV popularization

*This content was translated by AI.

In 2026, the electric vehicle market is facing an unprecedented turnaround due to aggressive price-cutting competition that began with Tesla, the so-called "chicken game." As global automakers have lowered their sales prices or strengthened entry-level lineups to defend their market share, consumers are faced with a variety of electric vehicle options, with actual purchases ranging from 20 million won to 30 million won, including subsidies.

Tesla was the first to open the door. Tesla launched the 2026 model and cut the factory price of its flagship Model 3 RWD to 49.9 million won. The figure easily meets the standard of 53 million won for subsidies for electric vehicles in the country, and the actual purchase price will fall from 37 million won to 39 million won if local government subsidies are added. In particular, the price of performance models, which are high-performance trims, is adjusted to 59.99 million won and is absorbing premium demand in a low-performance manner.

In response, Hyundai Motor and Kia went head-to-head with two-track strategies of "cost-effectiveness" and "financial benefits." Hyundai Motor has preoccupied the market in the late 20 million won range by introducing the Ioniq 3, an ultra-low-end entry model, while setting the actual purchase price of the Ioniq 5 and Ioniq 6. Kia has also built a strong SUV lineup in the mid-30 million won range through its new models EV3 and EV5, and is targeting demand for urban second cars through Ray EV and Casper Electric. In particular, Hyundai Motor Group lowered the purchase threshold further by implementing an unconventional financial promotion to lower the installment interest rate to the 2.8 percent range.

The movement of the imported car market is also unusual. Volvo Cars cut the price of its premium compact SUV, the EX30, by more than 7 million won, and declared the popularization of imported electric vehicles as its actual purchase in Seoul reached 36 million won. BYD, which has begun to target the Korean passenger car market in earnest, is also threatening the domestic light electric vehicle market by presenting an unconventional price tag of early to mid-20 million won with cost-effectiveness models such as Dolphin. There is also an unexpected atmosphere. Recently, imported cars are also priced lower than internal combustion engines. Porsche Cayenne, which was officially launched on the 19th, set the price lower even though electric cars are new cars than internal combustion engines. Genesis also released 2027 GV60 and GV70 electrification models, freezing prices and raising specifications

This downward leveling of prices is also in line with the government's 2026 subsidy guidelines. As the Ministry of Environment has set a 100 percent subsidy threshold of less than 53 million won, most brands are competing for survival by adjusting prices below this threshold. In addition, competition for follow-up management is intensifying, with manufacturers expanding programs to guarantee the balance of used cars to protect existing borrowers from falling asset values due to sharp price cuts.

Industry experts said, "The year 2026 will be an inflection point for electric vehicles to settle into public consumer goods beyond the exclusive possessions of early adopters," adding, "As price competition between brands intensifies, consumers will show a reasonable consumption pattern that carefully examines performance, prices, and post-service."

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*This content was translated by AI.