Ioniq 5 targets VW ID4, but also more upscale EVs, Hyundai exec says

Hyundai is aiming the newly launched Ioniq 5 full-electric crossover as a direct competitor to the Volkswagen ID4, although the two vehicles are in different segments, the automaker’s Europe chief, Michael Cole, said.

At the same time, he said, the Ioniq 5 could also appeal to buyers of premium full-electric crossovers such as the Audi e-tron, Tesla Model Y and BMW iX3 because positioning, competition and even pricing are difficult to define in the still-developing electric vehicle market. 

"It feels like any electric vehicle probably is a competitor right now, within a reasonable scale," Cole, who is president and CEO of Hyundai Europe, told Automotive News Europe.

Nonetheless, the ID4 remains the main target of the Ioniq 5, the first vehicle from Hyundai’s electric subbrand. 

"Hyundai is still a mainstream brand, and if you are positioning yourself like that, you always have to look at who is the market leader; and VW is inevitably going to be your benchmark," he said.

Hybrid and electric models from Hyundai have used the Ioniq name, but last August the automaker announced it was launching a global battery-electric subbrand using the Ioniq name. Ioniq plans to release two more full-electric vehicles in the next three years.

Cole said that Hyundai had no plans to move Ioniq upmarket to premium or near-premium status. Hyundai's Genesis brand already competes in those segments, although it’s not yet available in Europe. 

Hyundai describes the Ioniq 5 as a midsize crossover, while VW considers the ID4 a compact. At 4635 mm (182.5 inches) the Ioniq 5 is shorter than other midsize crossovers (the Audi e-tron is 4901 mm long, and the BMW iX3 is 4734 mm long), but slightly longer than the ID4, at 4585 mm. 

Hyundai says the Ioniq 5 has the interior space of a larger midsize vehicle because its dedicated E-GMP electric vehicle platform allows for a longer wheelbase. 

The price of the Ioniq 5 has not been announced. Autocar magazine has reported that the price of a higher-trim launch edition, called Project 45, will be 45,000 pounds (53,200 euros or $63,450) in the UK. In comparison, the ID4 launch edition costs 49,950 euros, with a base model listed at 36,950 euros in Germany. 

The Model Y starts at 58,620 euros, the e-tron starts at 71,900 euros and the iX3 at 69,950 euros.

The Project 45, which has options such as a solar roof and 20-inch wheels, can be ordered in France, Germany, the UK, the Netherlands and Norway. Deliveries will begin in the second quarter. 

Hyundai expects to sell 70,000 Ioniq 5s globally this year and 100,000 annually starting in 2022, CEO Jaehoon Chang has said. About 40 percent of sales will come from Europe and 30 percent from North America. That would mean sales of 28,000 units in Europe in 2021 and 40,000 a year starting next year. 

VW has said that it expects ID4 global output to hit half a million units annually by 2025.

The Ioniq 5 will be followed in 2022 by the Ioniq 6, a midsize sedan that will take inspiration from the Prophecy concept shown in March 2020. It will be followed in early 2024 by the Ioniq 7, a large SUV.

Cole said Ioniq will be run as a part of the Hyundai brand. "We see this opportunity with the new E-GMP platform to establish a family of vehicles, but within the broader Hyundai family," he said. 

Hyundai's current full-electric vehicles, the Kona subcompact crossover and Ioniq compact sedan, share platforms with gasoline and hybrid vehicles and are front-wheel drive.