Right when everyone thought EV prices were stuck at premium levels, Hyundai dropped a bombshell. The 2026 IONIQ 5 just got slashed by up to $9,800 across almost every trim level, bringing the base model down to $35,000 before any additional savings. That timing couldn’t be better, considering the federal EV tax credit just disappeared on September 30th. Instead of hoping for government help, Hyundai went straight to the source and made the actual sticker price way cheaper.
- Base 2026 IONIQ 5 SE now starts at $35,000, down from $42,600 on the 2025 model
- Price cuts range from $7,600 to $9,800 depending on trim, with an average reduction of $9,155
- 2025 models still in stock continue getting $7,500 cash incentives through October
What Changed and Why It Matters
The numbers paint a pretty clear picture. The entry-level IONIQ 5 SE Standard Range with rear-wheel drive dropped $7,600, landing at exactly $35,000. Want the extended range battery? That SE model with 318 miles of EPA range now costs less than $40,000. The SEL trims, both rear-wheel and all-wheel drive versions, saw the biggest cuts at $9,800 each. Even the rugged XRT off-road variant came down $9,225 to $46,275.
Hyundai says this move reflects current market conditions and supports their ramping U.S. production. They’re making these things at their new Georgia plant and can finally compete on price without relying on tax breaks. The IONIQ 5 already had a great third quarter, with sales jumping 90% compared to last year and over 22,000 units sold. Through September, they’ve moved 41,091 of these electric crossovers, up 35% from the previous year.
How This Stacks Up Against the Competition
Looking at the electric SUV market right now, the IONIQ 5 pricing hits the sweet spot. The Chevrolet Equinox EV starts around the same price point at $34,995 and has been selling like crazy. Tesla’s Model Y sits considerably higher, starting above $41,000. For buyers weighing conventional options against going electric, the gap keeps shrinking. Someone cross-shopping a well-equipped Hyundai Elantra sedan at $30,000 might find the $35,000 IONIQ 5 electric SUV way more appealing than they expected.
The IONIQ 5 brings some serious tech advantages to the table. This thing uses an 800-volt charging architecture, meaning you can go from 10% to 80% battery in about 20 minutes at the right fast charger. Most competitors need closer to 30 minutes or longer. The IONIQ 5 also comes factory-equipped with the NACS charging port, letting you plug directly into Tesla Superchargers without any adapters.
Small Changes for 2026
Hyundai kept the 2026 IONIQ 5 as a carryover model, so you’re getting the same award-winning electric crossover that’s been racking up accolades since its 2022 debut. The only real additions include a dual-voltage charging cable as standard equipment and a new Sage Silver Matte exterior color option. That’s actually pretty smart. When you already have a winner, sometimes the best update is making it cheaper.
The powertrain options remain the same. The base SE Standard Range packs a 63 kWh battery good for 245 miles of range. Step up to the extended range 84 kWh battery and you get 318 miles with rear-wheel drive, or 303 miles if you go for the dual-motor all-wheel drive setup. Power ranges from 225 horsepower in the base model to 320 horsepower in the dual-motor versions.
Racing to Keep Up
This aggressive pricing shows how the EV market shifted in 2025. Without the federal tax credit propping up sales, automakers need to make the math work on monthly payments. Ford, GM, and others announced they’d keep offering lease incentives equivalent to the old tax credit, but Hyundai went further by cutting the actual purchase price.
Competition keeps heating up too. The Equinox EV has become America’s best-selling non-Tesla electric vehicle. The Ford Mustang Mach-E holds steady in the top five. Kia’s EV6, which shares the same platform as the IONIQ 5, offers similar tech at competitive prices. Even Toyota finally got serious with the bZ4X, though it still lags behind on charging speed and range.
Why This Actually Matters
Here’s what you need to know. Hyundai took one of the best electric SUVs you can buy and made it $10,000 cheaper than it was a few months ago. The 2026 IONIQ 5 delivers real-world range over 300 miles, charges incredibly fast, looks distinctive on the road, and now costs about the same as mainstream gas SUVs. That’s the formula that’ll actually get people to switch to electric.
For anyone who missed the September 30th tax credit deadline, these price cuts compensate for that lost incentive and then some. And if you’re shopping for leftover 2025 inventory, you might score an even better deal by stacking that remaining $7,500 incentive on top of dealer discounts. The awards and rave reviews are great, but making the IONIQ 5 accessible to average buyers wins the day.
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