Hyundai Drops Ioniq 5 Prices Nearly $10,000, Extends $7,500 Incentives Through October

Automakers are coming up with all sorts of ways to make their electric vehicles more appealing following President Trump's murder of the $7,500 EV tax credit. Now, Hyundai is dropping the sticker price of its incredibly popular Ioniq 5 crossover for 2026 and continuing to offer a $7,500 cash incentive on 2025 models through the end of October.

The Korean automaker says the moves reflect Hyundai's commitment to affordability and its long-term EV strategy, including plans to bring electric vehicle production to its factory near Savannah, Georgia. Hyundai hasn't gotten into specifics for 2026 pricing yet, but it says MSRP on Ioniq 5s will be dropped by up to $9,800, depending on the trim level. That's a big chunk of a change on a car that — right now — costs between $44,075 and $55,775, including destination.

Hyundai tells Automotive News that ongoing sales momentum enables it to cut prices, pointing to "financial strength and ability to navigate market uncertainty." I'm sure that's a very enviable position for many automakers.

In the third quarter of 2025, Hyundai says its U.S. EV volume more than doubled from the same time last year, raising overall sales 13% to 239,069 vehicles — a new record. The Ioniq 5 by itself saw a sales jump of 90% to 21,999 units. The Ioniq 6 sedan (which I love) experienced a 29% gain in sales to 2,910 units, and 3,164 of the three-row Ioniq 9 — which went on sale in May — found themselves in people's driveways.

In a statement to Automotive News, Hyundai North America CEO Randy Parker said the price cut and incentives reinforced "Hyundai's legacy of delivering exceptional value and support." Here's what else he told the outlet:

"While the $7,500 EV credit has expired, our electrification strategy has always extended beyond incentives," Parker said. "We invested in EV innovation well before the [Inflation Reduction Act] and remain steadfast in our commitment to affordability, quality, and customer care."

One of the rules of the EV tax credit was that imported EVs weren't eligible, which is why Hyundai leaned heavily on leasing. It enabled the company to pass down the credit to customers while it worked to make the Ioniq 5 eligible for the tax credit. Since May, the car has been built in the Savannah factory, meaning it was totally eligible for the credit, and Hyundai's decision to keep the $7,500 incentive going through October will definitely help some folks get behind the wheel of one of these great little crossovers.