The 2025 Hyundai Ioniq 5 is the latest update in Hyundai’s electric vehicle (EV) lineup, marking an important milestone in the company’s EV journey. Hyundai has shifted production for this model to the United States, with assembly now taking place at its plant in Montgomery, Alabama. This shift aligns with recent U.S. policies encouraging local EV production, particularly the Inflation Reduction Act, which incentivizes consumers to choose EVs manufactured domestically. As such, the Ioniq 5 is now eligible for various tax credits and rebates, potentially lowering the overall cost for U.S. buyers and making it more attractive in a rapidly growing market for EVs
The 2025 Ioniq 5 has a starting price of $43,975, an affordable range in the EV market, which has typically seen higher price tags due to costly battery technology. This model continues to build on Hyundai’s existing Ioniq 5 platform, which has been celebrated for its range, spacious interior, and impressive technology integration. The new version includes several minor updates, improving energy efficiency and comfort. A notable addition is the incorporation of recycled and sustainable materials within the interior, part of Hyundai’s commitment to eco-friendly production.
Hyundai has also improved the Ioniq 5‘s performance and efficiency, particularly in colder climates where EV performance can drop. A new heat pump system ensures that battery energy is used efficiently, maintaining range even in winter conditions. This feature should appeal to customers in colder regions of North America, who might otherwise hesitate to purchase an EV due to concerns over cold-weather performance.
The Ioniq 5’s design remains largely the same, with a futuristic exterior that emphasizes clean lines and minimalism, combined with a spacious cabin, thanks to its flat-floor design. Hyundai has equipped this model with an updated infotainment system and a suite of driver-assist technologies, keeping it competitive in an EV market that demands the latest in convenience and safety features. This 2025 release highlights Hyundai’s evolving EV strategy, balancing sustainable design, local manufacturing, and affordability to capture a larger share of the North American market.
