Even though sales of electric vehicles aren't growing as fast as in past years and President-elect Donald Trump may ditch tax credits for EV buyers, automakers are moving ahead with new models that should appeal to mainstream buyers.
Family haulers are the latest to see a new entry, with Hyundai unveiling the Ioniq 9 electric SUV on Wednesday night ahead of the Los Angeles Auto Show, where it will be displayed. The show's press day is Thursday, and it runs until Dec. 1.
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The large SUV has three rows of seats for as many as seven passengers, aiming at families who have to transport kids and goods all over town or even on road trips.
Through September, U.S. new EV sales were up 7.2% to about 936,000, according to Motorintelligence.com. That’s slower growth than the 47% increase in 2023. But EV sales this year still are likely to surpass last year’s record of 1.19 million. The EV share of new vehicle sales this year is 7.9%, up from 7.6% last year.
Analysts say sales are slowing because early adopters have bought EVs and mainstream buyers are worried about limited range and a lack of chargers on longer trips.
Still, automakers are adding segments of the markets, and with more models arriving, buyers have more choices, said Stephanie Brinley, an associate director with S&P Global Mobility.
“We're starting to see some of that proliferation throughout (market) segments,” she said. “That's part of advancing electric vehicle sales.”
Automakers are on track to introduce 15 new electric vehicle models in the U.S. next year, according to Cox Automotive, adding to about 75 already on sale.
The Ioniq 9, with more than 300 miles (480 kilometers) of range on a single charge, joins the Kia EV9, Rivian R1S, Tesla Model X, Volvo XC90, and Cadillac Vistiq and Escalade in the electric people-hauling market.
The Hyundai can go from 0 to 60 mph (0 to 97 kilometers per hour) as fast as 4.9 seconds, and comes with a built-in NACS charging port, the Tesla standard that's being adopted by nearly all electric vehicle makers. At a 350-kilowatt fast charging station, the Ioniq 9 can go from a 10% battery charge to 80% in 24 minutes, the company says.
Although many mainstream buyers will be reluctant to switch from gas-powered vehicles, those looking for family haulers should consider the Ioniq 9 and other EVs, Brinley said. With 250 to 300 miles (400 to 480 kilometers) of range battery range, most wouldn't need to charge every day, she said, although they would need a charging station in their garage or some other place to fill up.
“The interior packaging is super comfortable,” she said, noting that EVs have flat floors with more spacious cargo and passenger room compared with gasoline vehicles.
The price of the Ioniq 9 wasn't released, but Brinley said it almost certainly will cost more than Hyundai's comparable gasoline vehicle, the Palisade, which starts at $36,800 excluding shipping.
U.S. EV prices have come down as demand has slowed, but on average they're still higher than gasoline counterparts. The average sale price of an EV in September was $56,328, about $8,800 more than the average gas vehicle, according to Cox.
A $7,500 federal tax credit is designed to bridge that gap, but few vehicles get the full credit for purchases due to restrictions on where battery parts come from. Also, vehicles must be made in North America to get the credit for purchases. Most EVs, however, can get the tax credit applied to leases.
Trump has pledged to get rid of the credits, especially those for leases, but since they are part of the Inflation Reduction Act passed by Congress, the Treasury Department says it would take a new law to kill them. That's possible because Trump's Republican Party will control both houses of Congress.
Hyundai expects the Ioniq 9, to be built at its new factory in Georgia, to get the full $7,500 tax credit if it's still available. The new EV goes on sale in the U.S. and South Korea in the first half of next year.