Hyundai Won’t Take A “Knee-Jerk Reaction” To Tesla’s Price Cuts, Says European CEO

The Korean manufacturer’s European chief says consumers need stability.

Iulian Dnistran

By: Iulian Dnistran

May 18, 2023 at 4:50am ET

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Tesla’s price cuts have prompted a new response from a rival automaker, and this time it’s Hyundai that takes to the stand to explain how it will handle the issue of lowering prices for its EVs.

Speaking during the Reuters Automotive Conference in Munich, Hyundai’s European CEO Michael Cole said that the carmaker was not making a direct change to its pricing strategy, adding that customers need reassurance that prices won’t go up and down, in a jab at Tesla’s sometimes confusing price changes.

"We are not taking what I'd call a knee-jerk reaction to what the competition does... we know that Tesla's pricing will alert some consumers to consider Tesla that hadn't before, so of course you have to look at that," Hyundai Motor Co Chief Executive for Europe Michael Cole said.

Furthermore, the European chief said that Hyundai has to be confident in its pricing strategy, hinting that retail prices will remain the same for the time being, at least in Europe.

Gallery: 2023 Hyundai Ioniq 5: 2022 Motor1.com Star Awards

2023 Hyundai Ioniq 5: Motor1.com Star Awards

The Korean carmaker, which manufactures electric models like the Tesla Model Y-rivaling Hyundai Ioniq 5, isn’t the first voice in the automotive industry to disagree with the Elon Musk-led EV brand.

Recently, American EV startup Rivian, which makes the R1T pickup and R1S SUV, reaffirmed its determination to not cave in to cutting prices, with the firm’s CEO, RJ Scaringe, saying that the “flagship” prices aren’t going anywhere.

Additionally, Ford CEO Jim Farley went on to compare the price war started by Tesla to Henry Ford’s price cuts for the Model T starting in 2013, but later went on record describing the current price cutting as “a worrying trend,” and that Henry Ford’s strategy ultimately put the company at risk.

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Currently, the Tesla Model Y, which is the EV maker’s best-selling vehicle in the United States, is more affordable than the average new car or truck in the United States, according to a recent report by Bloomberg.

As always, we’d like to know what you think about this, so head over to the comments section below to give us your thoughts.