“We’ll Take Off 30 Million Won on Electric Vehicles”... The Automotive Industry Pulls Out the Discount Card
Domestic and Foreign Automakers Implement Aggressive Discounts as Electric Vehicle Sales StumbleAs sales of electric vehicles (EVs) stagnate, domestic and foreign automakers are rolling out bold discount strategies to overcome the situation.Mercedes-Benz EQE SUV and EQE. / Mercedes-BenzThese moves aim to counter the slowdown in electric vehicle consumption due to the global economic downturn and the intensified fear of electric vehicles following fire incidents involving Benz's EVs. Automakers are offering significant discounts ranging from several million to a few hundred thousand won to alleviate the price burden on consumers.First, at the center of electric vehicle phobia is Mercedes-Benz (hereafter referred to as Benz), which has applied large-scale discounts across most models. According to industry reports, Benz has announced a discount of 12.42 million won on the EQE 350+, a model involved in a fire incident. While the new vehicle's price is 105 million won, applying the discount allows it to be purchased for just over 90 million won.Mercedes-Benz EQB. / Mercedes-BenzBenz's compact electric SUV, the EQA, is also subject to discounts. Depending on the trim and model year, the EQA can be purchased for 2.37 million to 5.15 million won less. Additionally, the EQB is being sold with discounts ranging from 3 million to 5.7 million won. With the maximum discounts offered, the prices of the EQA and EQB drop to just over 60 million and 70 million won, respectively, before applying subsidies.In addition to discounts, Benz is running various promotions, including: ▲An additional 2-year warranty extension ▲A charging voucher worth 1 million won ▲Tire replacement service in case of tire damage while driving ▲Free valet service and 50% discount on parking fees at Incheon Airport ▲Zero-interest financing for Benz electric vehicles.BMW i7 M50 xDrive. / BMWBMW also joined the large-scale discount war starting this month. According to industry reports, BMW is offering discounts of 12% to 15% on the mid-size electric SUV iX xDrive 50 Sports Plus trim to boost electric vehicle sales. The highest trim, the iX xDrive 50 Sports Plus P2, priced at 155 million won, can see discounts of up to 20 million won.The flagship electric sedan, the i7, is also included in the aggressive discount strategy. The i7 eDrive 50M Sports Limited can be purchased at a discounted rate of 13.8% to 14.4% off the new car price, translating to 23 million to 26 million won in savings. This means that depending on the trim, the price of the nearly 200 million won i7 eDrive M50 can be brought down to the mid-150 million won range.The i7 M70 xDrive, the most expensive model, has even larger discounts, reaching as high as 31 million won. This allows buyers to obtain the 231.8 million won i7 for just 200.8 million won.Audi e-tron GT Quattro. / AudiAudi, which has recorded poorer sales in the electric vehicle segment compared to BMW and Benz, is offering a whopping 20% discount on the 2023 model Q4 e-tron, applicable to all trims. The Q4 e-tron Sportback 40 Premium can be purchased with a discount of 13.08 million won.Notably, the high-performance electric sedan, the e-tron GT Quattro, sees discounts of up to 46.42 million won, allowing it to be purchased for 159.89 million won instead of the usual 206.32 million won.As news of these significant discounts from import brands spreads, netizens have started to see it as an opportunity to purchase electric vehicles, which typically carry a high price burden, at a lower cost. Conversely, there are concerns about simply being lured by discounts and the many safety risks involved in buying electric vehicles.Hyundai Ioniq 5. / HyundaiDomestic automakers are also participating in the electric vehicle discount war. Hyundai Motor Company is implementing the “EV Every Festa” to boost electric vehicle sales. Customers purchasing the Ioniq 5, Ioniq 5 N, Ioniq 6, or Kona Electric can receive a 2 million won discount, while Genesis, Hyundai's luxury brand, offers a 3 million won discount on the GV60 electric model.Kia is following suit as well. The company is offering discounts of 2.5 million won on the EV9, 2 million won on the Bongo EV, and 1 million won each on the Niro EV and Niro Plus taxi. Additionally, for Bongo EVs purchased by small businesses, farmers, fishermen, and members of forestry cooperatives, Kia is offering 700,000 won to assist with charging station installation, along with a 300,000 won additional discount if the station is not installed, or the provision of an ICCB (220V emergency slow charging cable).Kia EV9. / KiaFurthermore, individuals and sole proprietors purchasing Kia electric vehicles can register their consultation information on the Kia.com event page to receive support for the down payment when purchasing the vehicle. For example, the support for the EV9 is 300,000 won, while other electric vehicles receive 100,000 won.KGM Torres EVX. / KGMKG Mobility (hereafter referred to as KGM) is also conducting an electric vehicle festival to overcome the electric vehicle chasm. KGM is offering a 3D around-view monitoring system worth 1 million won when purchasing the Torres EVX and Torres EVX VAN, and discounts of 3 million won on the Korando EV. Additionally, customers purchasing electric vehicles can receive an additional 500,000 won discount, and in areas like Seoul, Busan, and Gangwon Province, where regional discounts for electric vehicles are implemented, they can receive an additional subsidy of 500,000 won.When applying all discounts and subsidies, customers in Busan can receive approximately 9.4 million won off the Torres EVX. For the Korando EV, with around 10 million won in support, it can be purchased for about 30 million won.An industry insider noted, “Due to the increasing anxiety over electric vehicle fire incidents, sales are significantly declining.” They added, “To boost electric vehicle sales, both domestic and foreign brands are implementing aggressive discount policies.”They further stated, “However, simply relying on price reduction policies is expected to result in only a temporary increase in sales. To achieve a substantial increase in electric vehicle sales, it is crucial to convey accurate information about electric vehicles and strengthen awareness of their safety to overcome the chasm and phobia phenomena.”David HEO ih.heo@chosunbiz.com