Written by Abhirup Roy
SAN FRANCISCO (Reuters) – Hyundai Motor ( OTC: ) unveiled its first three-row electric SUV on Wednesday, tapping into the large family car market that global automakers hope will one day become a profit center.
Hyundai’s IONIQ 9 will be launched in the United States and Korea early next year with a range of more than 300 miles, the Korean company said in a statement. Launches in Europe and other markets will follow, it said.
Three-row SUVs have replaced minivans and station wagons to become the large vehicle of choice for many soccer moms and dads hauling kids and friends around town and on road trips with lots of passengers and gear.
Most EVs lose money. But gains from gasoline-powered versions promise big payoffs for automakers as battery costs drop, and early launches give brands a head start in an emerging market segment.
Lucid (NASDAQ:), General Motors (NYSE:)’ Cadillac, Volvo (OTC:) and Vinfast all introduced three-row EVs, while Hyundai’s cousin Kia already has its own version.
“It’s a very important part of the gas side,” said Sam Fiorani, vice president at research firm AutoForecast Solutions. “The problem with it is that they are big cars and figuring out how to design a battery pack around the storage and the use of three lines takes a concerted effort.”
In addition, large batteries are not enough to avoid charging during long road trips.
Still, automakers need to tap into the three-row SUV market to offer loyal customers options, Fiorani said. “If you’re not in the category they expect you to be in, they’ll move on to someone else, and it’s a lot easier to keep a customer happy than to win a customer away from another brand.”
With the current incentives, Fiorani predicts the new models will help double sales of three-row EVs to about 150,000 next year, up from 68,000 this year.
A handful of models on the market with three-row versions include Rivian (NASDAQ: )’s R1S, which starts at $76,000 and Tesla (NASDAQ: )’s Model X, which starts at $80,000. There is also a three-row Model Y variant.
Lucid began taking orders for its $95,000 Gravity SUV this month and Vietnamese EV maker VinFast (NASDAQ: ) on Tuesday began delivering the VF (NYSE: ) 9 SUV with a starting price of $70,000 .
Hyundai did not disclose the price of the IONIQ 9, but the Kia EV9 starts at $55,000, and models from related companies are generally priced similarly.
Hyundai aims to have a full lineup of 23 EV models by 2030. The IONIQ 9, built in Georgia, will be able to charge from 10% to 80% in 24 minutes at high-quality charging stations, and is compatible with Tesla’s Supercharger. the network.
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Most automakers are moving forward with their plans as US President-elect Donald Trump has promised to withdraw government subsidies for EVs.
However, Ford (NYSE: ) in August shelved plans to produce a three-row electric SUV, opting instead to build hybrid SUVs to attract customers with long-distance road trips. Competitors are also responding to increased consumer demand for vehicles with powerful electric motors and a small battery pack as a cost-effective way to use electricity.
“The whole EV market right now is tough and (building three-row EVs) is very difficult because of the high prices and costs associated with it,” said Jessica Caldwell, head of insights at automotive research firm Edmunds.
The vehicles are part of the automaker’s long-term strategy to increase EV offerings, but “expectations definitely need to be reduced in terms of volume in this segment,” he said.
The high price and limited range, especially for family road trips, limit the appeal of those vehicles to EV first-timers, he added.
The target audience of wealthy buyers of three-row SUVs should not be dissuaded by Trump’s plans to cut the $7,500 federal tax credit for EV buyers, analysts say, noting that most do not qualify for such subsidies.
Still, it doesn’t help, Caldwell said. “I think it makes the pack look less attractive.”
