Cheaper Hyundai Ioniq 5 confirmed for Australia! Electric SUV to get smaller battery and new models to compete with Kia EV6 and Tesla Model Y

The Ioniq 5 will soon drop in price in Australia thanks to a smaller battery.

If you're looking to buy a Hyundai Ioniq 5 but think it's too expensive, read on.

Hyundai is looking to expand its Ioniq 5 electric SUV lineup with a range of cheaper models and lower-capacity batteries, and they could arrive here before the end of the year.

The Ioniq 5 is currently available in a single-engine, rear-wheel-drive (RWD) Long-Range version priced from $71,900 before travel and dual-engine, all-wheel drive (AWD) from $75,900.

Using the same 72.6 kWh lithium-ion battery, the rear-wheel drive version puts out 160 kW/350 Nm and has a range of 451 km, while the AWD puts out 225 kW/605 Nm and travels 430 km on a single charge.

However, a Hyundai spokesman said Cars Guide that the company will introduce a smaller capacity battery called the Standard Range, as well as up to three lower trim levels.

The smaller 58kWh Standard Range battery is available internationally, including the right hook market in the United Kingdom, in three different packages.

If Hyundai Australia follows suit, it could cut the Ioniq 5's starting price by thousands of dollars.

While it's still too early for Hyundai Australia to confirm details of the extended range, this could bring the price down to $60,000 or possibly even lower.

This will undermine the Kia EV6, which has a starting price of $67,990 for the RWD Air, and will put it in competition with the Polestar 2 sedan ($59,900) and the Tesla Model 3 (starting at $59,990). Tesla has yet to announce pricing for the Model Y SUV.

It will also be much cheaper than the Lexus UX300e (starting at $74,000), Mercedes-Benz EQA ($76,800) and Volvo Recharge Pure Electric ($40).

Hyundai's other charged SUV, the Kona Electric, ranges in price from $54,500 for the Elite Standard Range to $64,000 for the Highlander Extended Range.

Depending on the market, the 58kWh Standard Range is available with either single RWD (125kW/350Nm) or dual AWD (173kW/605Nm) engines with a range of up to 384km.

However, Hyundai Australia has ruled out a new version of the larger battery pack that was just announced as part of the model year update.

A new 77.4 kWh battery pack will be offered in select markets, as well as technical upgrades, including interior and exterior mirrors with a digital video camera, and reconfigured dampers to improve ride and handling.