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BFD Expert Voices - Climate Deals

BFD Expert Voices

Who could have predicted that 1958's "The Blob" accurately captured our car culture: roads bloated with bulbous crossovers that look like beanbags on wheels.

And who would have guessed that Hyundai(!) would be the one to show us a different way?

Why it matters: Hyundai's angular Ioniq 5 unites everything consumers say they want in an EV: long range, a fun drive, distinctive styling, and a relatively attainable price.

What's happening: The Ioniq 5 is Hyundai's flagship EV and its first sold solely as an electric vehicle. 

State of play: Over the past two decades, we've learned to live with bunkers on wheels. 

The market is overrun with rotund crossovers molded to minimize wind-resistance and comply with fuel-efficiency mandates, while outfitted with windows that have shrunk to the size of gun slits. (Have you noticed that the headlights also look angry?) 

Driving the news: Hyundai seems to be the first major automaker to realize how revolutionary — and how much fun — a battery-powered vehicle can be. 

No need to worry about EPA efficiency mandates, because EVs don't use fossil fuels? Let's bring back hard lines and corners.

Refueling now takes 15–30 minutes? Allow us to lean your seat all the way back — and we mean all the way — to gaze out the panoramic moon roof.

Of note: Let's not get crazy. Minimizing drag of course matters for maximizing battery range. 

Bottom line: The approach underscores how differently Hyundai is approaching this market, from tiny design features to broad strategy.

Most other automakers are focusing on SUVs and trucks that dominate the U.S.

Hyundai's next all-electric model, the Ioniq 6, will be a four-door sedan. Its first three-row all-electric SUV won't debut until 2024.

What we're watching: The automaker caused a stir last fall when it released concept designs for future EVs that leaned heavily into a boxy, '80s aesthetic.

Hyundai's not the only one to reach into the past: VW is reviving its beloved microbus as an EV.

But if VW's approach is "Hair," Hyundai's vision is "Escape from New York."

💭 Our thought bubble: We'll see how the Ioniq 6 sedan sells. And whether Hyundai follows through on its edgiest EV designs. 

But, crucially, the automaker has shown that it hasn't lost sight of the fundamentals: range, charge time, drive quality, and price.

"We know there’s barriers to entry to EVs: range, charging speed. The Ioniq 5 addresses all that," Yuval Steiman, Hyundai's director of eco-compliance and research, says. "To get people into these products, it’s got to meet what they do day-to-day."

1 big thing: Hyundai is working all the angles

A Hyundai Ioniq 5, plugged into a green-lit Electrify America charging station at night.

The Hyundai Ioniq 5 is heavy on the looks. Photo: Alan Neuhauser/Axios

Hyundai arranged for a fully charged Ioniq 5 to be dropped off at my home outside Boston. I drove it all over town — and on a lengthy road trip to a harvest party on a friend's commune in Western Mass. 

Overheard: "We keep five pigs here. Well, four now." [Gestures to table with smoked pork.]

Why it matters: It's nearly impossible to avoid reviews that heap praise on the Ioniq 5.

My immediate impression: disappointment. The bright, fabric-and-plastic interior struck me as uninspired. The interior at first seemed nothing more than the "snarky" do-not-disturb sign at a "boutique" hotel chain.

Then I stumbled across the full-recline function while charging the car. It entirely reframed my view. It won me over. My wife, too.

Price as tested: $51,500 for the top-line "Limited" trim.

Range: 303 miles for three of the four trims. The base trim gets 220 miles.

Charge time: 18 minutes from a DC rapid charger, as fast as it gets.

Huge interior. Auto writers often refer to a car's interior as its "greenhouse" — the giant windows and large moonroof make it feel like one.

This is the kind of range we need from EVs.

Features seemingly designed to bring more joy to driving. 

Comfortable seats, peppy driving experience.

If you're asking $40k to $50k for your car, you can do better than cheap, plasticky finishes.

It's not as bad as the Ioniq 5's sister, the Kia EV6, but the infotainment system is clunky and ugly. CarPlay or Android Auto are almost required.

As much as I appreciate how Hyundai is pushing boundaries with design, it doesn't mean I like every look — including the Ioniq 5. 

The bottom line: This is a charming car that's got everything a couple or family could want in an EV. 

It's the first of these EV loaners that spurred my wife to ask about buying it now.

2. The Ioniq 5 delivers

A gray Hyundai Ioniq 5 electric vehicle, seen from the front.

When visiting a commune, what better choice than an EV? Photo: Alan Neuhauser/Axios 

Hyundai's plans to spend $10 billion on EVs and self-driving vehicles in the U.S. in the next three years. 

Why it matters: The automaker, based in South Korea, aims to capture 11% of the U.S. market by 2030, a slight increase from 9.7% this spring. 

What's happening: Hyundai has plans to introduce 17 battery-electric vehicle models by 2030.

It's so far selling two: the all-electric version of the compact Kona crossover, and the Ioniq 5. 

Meanwhile: The automaker, like most others, is investing heavily in securing its battery supply chain. 

The latest: a $5.5 billion factory in Georgia. (That's part of the big $10 billion figure.) 

State of play: Automakers have announced a drumbeat of multi-billion-dollar investments in EVs.

Volkswagen, for example, plans to invest $7.1 billion in North America through 2027. Kia is eyeing $25 billion globally.

What's next: Like other automakers, Hyundai is playing with subscription-based pricing, and potentially making the battery pricing structure separate from that of the vehicle.

"That’s definitely an area that here in North America and even globally we’re studying very closely," Steiman says.

3. Hyundai's ambitions

A photo of the Hyundai Ioniq 5, taken from the back of the car.

The '80s influence is strong with the tail lights. Photo: Alan Neuhauser/Axios

Data: Automotive News Research & Data Center; Chart: Axios Visuals

Hyundai sold 18,492 of its Ioniq 5 vehicle in the first three quarters of 2022. 

Tesla's Model Y crossover and Model 3 sedan remain dominant.

4. How the sales stack up

⚖️ First, some Friday night news: A federal jury yesterday convicted Nikola founder Trevor Milton of defrauding investors. The New York Times has the details.

Now for this week’s Wheels: This week we're diving into the Hyundai Ioniq 5 — a crossover that's already being crowned the best EV of 2022.

Next time: Our review of the Ford Mustang Mach-E. Just how many surfaces can Ford put a pony badge? Tune in to find out! (Spoiler: It's a lot.)

October 15, 2022

1 big thing: Hyundai is working all the angles