Sales of electric vehicles (EVs) have not been accelerating at the same pace as in previous years, and with the potential upcoming changes to tax incentives for EV purchases, manufacturers continue to press forward with new models tailored to appeal to average consumers.
In this segment, family-friendly vehicles are making a notable entrance, particularly with the introduction of the Hyundai Ioniq 9 electric SUV, which was unveiled on Wednesday night prior to the Los Angeles Auto Show. This show, which features a press day on Thursday, will continue until December 1.
The Ioniq 9 is designed as a spacious SUV with the capacity for up to seven passengers across three rows of seating, making it ideal for families needing to shuttle children and belongings around town or embark on longer journeys.
According to Motorintelligence.com, EV sales in the U.S. rose by 7.2% to approximately 936,000 units through September. This growth rate is considerably slower compared to the 47% surge seen in 2023, yet it is anticipated that EV sales will exceed last year’s record of 1.19 million units. The proportion of new vehicle sales that were electric this year stands at 7.9%, an increase from 7.6% in the previous year.
Market analysts suggest the deceleration in sales is a result of early adopters already having purchased EVs, while many mainstream consumers express concerns over limited driving ranges and inadequate charging infrastructure for longer trips.
Nevertheless, manufacturers are broadening their market reach, with newer models providing increased options for consumers. Stephanie Brinley, an associate director at S&P Global Mobility, highlighted the expanding variety across different market segments as a driving force behind advancing EV sales.
In 2024, automakers are set to offer 15 new electric vehicle options in the U.S., adding to the approximately 75 models currently available, as reported by Cox Automotive.
The Hyundai Ioniq 9 boasts a range exceeding 300 miles (480 kilometers) on a single charge, positioning it alongside other electric SUVs like the Kia EV9, Rivian R1S, Tesla Model X, Volvo XC90, and Cadillac Vistiq and Escalade in the family-friendly electric market.
Performance-wise, the Ioniq 9 can accelerate from 0 to 60 mph (0 to 97 kilometers per hour) in as little as 4.9 seconds. It features a built-in North American Charging Standard (NACS) charging port — a standard being embraced by nearly every electric vehicle manufacturer. According to the company, when connected to a 350-kilowatt fast-charging station, the Ioniq 9 can charge from 10% to 80% in just 24 minutes.
While many average consumers might hesitate to transition from traditional gasoline vehicles, those in need of spacious family transportation may find the Ioniq 9, among other EVs, to be a viable option. Brinley mentions that with a range of 250 to 300 miles (400 to 480 kilometers), daily charging may not be necessary, although a dedicated charging setup at home or alternative locations would be beneficial.
Furthermore, the Ioniq 9 is designed with a spacious and comfortable interior, capitalizing on the flat floor layout typical of electric vehicles, which provides more room for both passengers and cargo compared to gas-powered models.
While Hyundai has not disclosed the price of the Ioniq 9, industry estimates suggest it will likely exceed the starting cost of the comparable gasoline-powered Palisade model, priced at $36,800 before shipping fees.
As demand for electric vehicles has begun to falter, prices have also come down — yet averages still exceed those of traditional gasoline vehicles. Cox Automotive reported that the average sale price of an electric vehicle in September was $56,328, which is about $8,800 higher than the average for gasoline vehicles.
To alleviate this price disparity, a federal tax credit of $7,500 is in place, although few buyers can access the full benefit due to specific restrictions regarding component sourcing and manufacturing locality. Most electric models can still apply for the credit when leased.
As political dynamics shift, former President Trump has expressed intentions to eliminate these credits, particularly for leases. However, due to their inclusion in the Inflation Reduction Act passed by Congress, voiding these credits would necessitate new legislation, which is a possibility given the Republican control of both congressional houses.
Anticipating the full $7,500 tax credit for the upcoming Ioniq 9, should it still be available, Hyundai is gearing up to manufacture this new model at its factory in Georgia. The Ioniq 9 is expected to launch in both the U.S. and South Korea in the first half of the coming year.