If you’ve been waiting for the right time to get behind the wheel of a Hyundai Ioniq 5, the 2026 lineup might just be your moment. The Korean automaker has launched the updated EV compact crossover with a dramatic price drop, bringing it into direct competition with similarly sized gas-powered SUVs.
The new base price is set at $36,600, well below last year’s figures. Hyundai’s strategy is clear: instead of relying on the now-expired federal EV tax credit, the company has chosen to cut prices across the board by an average of $9,155 compared to the 2025 models.
The smallest reduction applies to the Ioniq 5 SE RWD Standard Range, which is now $7,600 cheaper. On the other end, the SEL trims see the largest decrease of $9,800, with the RWD starting at $41,400 and the AWD version at $44,900. For buyers seeking more rugged capability, the Ioniq 5 XRT AWD now starts at $47,875, a $9,225 cut from last year, with the tow package available for an additional $500. At the top of the range, the Limited AWD is priced at $50,575, also down by $9,225.
What stands out is that every price cut exceeds the old $7,500 federal tax incentive, making the Ioniq 5 more attractive on its own merits. Hyundai is clearly betting that competitive pricing will draw in buyers without the need for government subsidies, shifting the conversation from tax benefits to drivetrain choices and features.
The big question now is whether Hyundai will extend this strategy to other models in the Ioniq lineup. While nothing has been confirmed, it seems logical that if the formula works for the Ioniq 5, it could be applied to the Ioniq 6 and beyond. Either way, Hyundai is positioning itself aggressively in an EV market that’s more competitive than ever.
