Electric vehicle shoppers in the United States will be getting a sweet deal on the Hyundai Ioniq 5 after the automaker significantly reduced prices for the 2026 model year.

Hyundai Motor America announced a price drop ranging from $7,600 to $9,800, depending on trim, on the electric crossover. The average price drop across the entire model range is $9,155, according to the automaker.

“Hyundai is taking bold steps to ensure our award-winning Ioniq 5 remains a top choice for EV buyers,” said Randy Parker, president and CEO, Hyundai Motor North America, in a news release. “This pricing realignment reflects our commitment to delivering exceptional technology and innovation without compromise.”

That gives the 2026 Hyundai Ioniq 5 a starting manufacturer’s suggested retail price of $35,000 (U.S.), not including freight charges and other fees. Converting that to Canadian dollars, that comes to $48,882 by today’s exchange rate.

That’s not a bad price drop for a car that’s previously been named World Car of the Year and World Electric Vehicle of the Year among other accolades.

What about Canada?

Unfortunately, prices are going up here for 2026.

The MSRP is climbing to $55,499, up from $52,999 in 2025, representing a $2,500 increase. Once you add various fees and levies, the starting Canadian purchase price comes to $58,288.

So, what gives?

“The recent pricing announcement regarding the 2026 Ioniq 5 in the U.S. applies specifically to the American market,” Hyundai Canada said in an emailed statement.

“While we’re aware of the changes made by Hyundai Motor America, it’s important to note that the Canadian and U.S. markets operate independently, with distinct pricing strategies influenced by local market conditions, regulatory environments, and market demand. Hyundai Canada’s website reflects the current MSRP for vehicles sold in the Canadian market. Should there be any updates, we’ll communicate them through our official channels.”

What’s driving the U.S. price decrease?

The announcement from Hyundai in the U.S. said the new pricing is intended to better align with the current market dynamics and support increased U.S. production volume.

One could read that as: Hyundai is sweetening the deal as EV sales growth has slowed in the U.S., and the end of the federal EV tax credit is expected to pull the rug out on the segment. Additionally, the Ioniq 5 is assembled in the U.S., at a facility that cost billions to open and which employs thousands of people.

“These changes come as part of a broader strategy to maintain the Ioniq brand’s leadership in the electric vehicle space while responding to shifting consumer expectations and competitive pressures,” the Hyundai Motor America news release said.

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