Hyundai to remove dealers from Ioniq 5 electric car sales

South Korean automaker Hyundai looks to be the next big brand to offer fixed, non-negotiable prices, putting dealerships bypassing its new electric vehicle, the Hyundai Ioniq 5, is expected to hit showrooms by the end of 2021.

Hyundai dealers in Australia have been invited to reimburse down payments for Hyundai Ioniq 5 electric car and redirect customers to Hyundai company website.

This means that frontline customers for the new Hyundai Ioniq 5 electric car will not have the opportunity to negotiate the price.

A confidential bulletin sent to Hyundai dealers states: “At this time, it is important that all deposits held by dealers for the Ioniq 5 are now promptly returned to these customers for their transition to the direct sales process. (Hyundai Australia) to customers. via website (Hyundai Australia).

Hyundai Australia’s advice to its dealers continues: “We would also like to remind dealers to refrain from taking further orders on Ioniq 5. Dealers who receive an inquiry should provide potential customers with the link to register their interest. via the Hyundai website.

Hyundai’s decision to sell the vehicle online and directly to customers mirrors the Mercedes-Benz EQC electric SUV sales method and Tesla’s direct sales model.

However, this method reduces the bargaining power of consumers on the purchase price and limits the possibility for dealers to expand their customer base with high-tech vehicles.

“We have seen a number of brands review distribution models in which the dealership sells conventional cars and the manufacturer sells electric cars,” said James Voortman, managing director of the Australian Automotive Dealers’ Association (AADA).

However, Voortman said, it is more beneficial for consumers to have a wider choice of vehicles in showrooms.

Although the ADA declined to comment on Hyundai’s decision to exclude dealers from the equation and sell cars directly through fixed prices, Mr Voortman said dealers who have invested in showrooms , staff and facilities “should be able to sell the entire model of the brand. range.”