Hyundai recruits dealers to sell IONIQ EVs

Let the haggling commence!

The Hyundai IONIQ 5 and IONIQ 6 are now being sold through the Korean car-maker’s franchised dealer network in Australia.

Until now, both electric vehicles had been available to purchase only online via a fixed-price ‘agency’ sales model, but now they can be bought at selected Hyundai dealers.

The change was signed off at last week’s Hyundai Motor Company Australia (HMCA) dealer conference in Hobart and is now in-place.

It essentially means you can now negotiate with a salesman on an IONIQ deal in the traditional way rather than pay a fixed price online.

The cars are available through the Hyundai Blue Drive network of approximately 100 dealers (out of around 160 total), some of which were previously designated to handle delivery and service of the IONIQ 5 and IONIQ 6 as agents (hence the agency model) for Hyundai.

All of them already sell the Kona Electric in the traditional franchised dealership manner.

The change back to traditional vehicle franchising comes at a time when Hyundai is ramping up to expand its EV offerings and sales volume in Australia.

The new entry-level Hyundai Casper pint-size electric SUV is not that far away from being announced for Australia, the large IONIQ 7 electric SUV will soon be on sale here and up to two battery-electric utes are expected to arrive Down Under within the next few years.

There is no word on whether the swap of the IONIQ EV models from fixed-price agency retailing to franchised dealer sales will impact Hyundai’s luxury sister brand Genesis.

It is currently sold through a handful of factory-owned stores in Australia, but there is undoubtedly a belief within HMCA that Genesis would benefit from more outlets and exposure.

carsales understands the reception from the dealers to being handed EV sales has been mixed.

Some see the move as HMCA off-loading much of the financial responsibility for its slow-selling IONIQ 5 and IONIQ 6 to the floorplans of its dealers.

But the lure of bigger selling models coming soon could be the carrot that keeps the dealers happy.

Hyundai initially faced demand that far outstripped supply when it first released the original batch of IONIQ 5s via online sales at a fixed price in October 2021.

In March 2023 permanent ordering was opened up online as supply of both the IONIQ 5 and the freshly-launched IONIQ 6 freed up.

But the IONIQ 5 and IONIQ 6 still attract only miniscule sales compared to the likes of the top-selling Tesla Model Y electric SUV and Model 3 electric sedan, against which they theoretically compete.

Agency and fixed-price online sales have been controversial arrivals in the Australian automotive retailing industry in recent years.

Mercedes-Benz and Honda have both moved to agency sales strategies despite bitter opposition from dealers including court action.

Both brands have dipped in sales, with Honda posting its lowest modern-day number in 2023.

Newcomers such as EV brand Polestar have also sold online and via a small number of factory outlets.

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