*This content was translated by AI.
Lexus unveiled its eighth-generation fully redesigned model in Korea, launching the brand’s first all-electric LINE lineup alongside HYBE Lead. Notably, it set the price of 'ES350e', the most affordable electric vehicle trim, at 71.6 million won—1.3 million won lower than comparable HYBE Lead models—triggering significant industry ripple effects. This bold move breaks the long-standing market assumption that electric vehicles are more expensive than internal combustion engine (ICE) vehicles due to costly battery installations.
In Japan, the starting price for both HYBE Lead and its electric vehicle is 7.9 million yen. However, according to Lexus officials, they significantly lowered the entry barrier for electric vehicles in Korea by considering the country’s high preference for EVs and its fiercely competitive market environment. The new ES350e offers a driving range of 478 km on a single charge and is equipped with advanced features including a 14-inch large display, the latest Lexus Safety System+ suite, and Lexus Connect connectivity.
This aggressive pricing strategy by Lexus is closely tied to the intense price competition in the imported vehicle sector, led by Tesla. Tesla secured the top spot in the imported car market from January to August this year with a 31% market share, driven by its Shanghai-made Model Y (starting at 49.9 million won). In response, Mercedes-Benz launched its new electric CLA at 52.9 million won—the full subsidy eligibility threshold—while Volvo introduced its large electric sedan ES90 starting at 72.94 million won. BMW also countered by adding a trim level for its new iX3 that qualifies for half the subsidy.
The ultra-low-price competition ignited in the imported vehicle market is now extending pressure to domestic automakers. A competitive landscape has emerged where premium electric and internal combustion vehicles from Hyundai, Kia, and Genesis directly rival imported models. Coupled with the accelerating entry of Chinese brands such as BYD and Zeekr into the Korean market, price competition across the entire domestic automotive sector is expected to intensify further.
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*This content was translated by AI.
