Model overlap helps sell BEVs: Hyundai

HYUNDAI says the availability of battery electric vehicles (BEV) across a variety of segments – particularly in the SUV space – is an important part of capturing a slice of Australia’s burgeoning electric vehicle market.

 

Speaking to GoAuto at the recent launch of hybrid and BEV Kona variants in Canberra, Hyundai Motor Company Australia product planning manager Chris Saltapidas said that choice – often irrespective of an overlap in model price – offers buyers access to important technologies not always available from its competition.

 

“It’s an interesting question, because we have had much the same discussion internally, and I can tell you it’s something we have studied in a lot of depth,” said Mr Saltapidas in response to questions about the overlap in price between BEVs in nearby segments.

 

“We’ve found it is not the issue we thought it might be, and not just because the cars are two different sizes. Even when you have traditional, ICE-powered cars in this situation, there will always be a price overlap – for example a high-trim Kona will overlap a base-trim Tucson, and so on.

 

“Potentially, we see that happening with the Kona EV and the Ioniq 5, depending on where the price lands for the former.”

 

It is a similar model to that adopted by consumer electronics brands that, for example, offer a larger display on a tablet or laptop in lieu of storage or processor performance and vice-versa.

 

Mr Saltapidas said being able to offer vehicles with different technologies, often with an overlap in price and size, was fundamental to driving interest at a showroom level.

 

He added that this was a strategy the brand was keen to carry forward as it looks toward low- and zero-emissions options.

 

It is a position he said HMCA was keenly studying as it moves to price its newly introduced Kona Electric.

 

“In looking at the historical demographics of who has been buying the Kona Electric and the Ioniq 5, is that they can be wildly different buyer types. Our buyer base in general is wildly different now,” he explained.

 

“That’s why for Kona Electric, we are trying to bring the price down to suit perhaps an older buyer, an empty nester, or someone who is moving up into the Kona from a smaller vehicle, and perhaps wants to consider the move to electric.

 

“For the Ioniq 5, there is a little bit of that ‘moving up’ scenario, say from Kona Electric or Tucson, but it is also attracting professional buyers at the higher end – people with very high household incomes.

 

“In fact, it is very interesting seeing the types of vehicles people are coming out of, typically from higher-end vehicles like Tesla and Polestar.”

 

In the middle reaches, however, Mr Saltapidas said there was a tendency for buyers to ‘shop up’ where their budget allows – either opting for a high-spec smaller car when equipment levels drive the buying decision, or to a larger vehicle when space is the leading priority.

 

“Buyers are very savvy now, and features like an 800-volt architecture will appeal to those who prioritise fast charging times – say 10 to 80 per cent in 18 minutes on a fast charger – as opposed to a 400-volt system that they might be happy to charge at home overnight,” he added.

 

“There is a lot that comes into the decision now, especially for new-to-EV buyers, which is why it is important to offer that differentiation.”

 

The new-generation Kona Electric is yet to be priced for Australia but is expected to run at a price premium over the ICE and HEV ranges, as well as the outgoing model (from $54,500-$64,000 plus on-road costs). The ICE and HEV 2024 Kona range is priced from $32,000-$46,500 + ORC.

 

At the time of publication, the Ioniq 5 is priced from $64,500 + ORC.

 

Given the previous generation Kona Electric’s pricing, it is expected there will be plenty of price overlap to support Mr Saltapidas’ comments. A price announcement for the 2024 Hyundai Kona Electric is expected to be made before the end of the year.