“If you’re getting a fully loaded Elantra, you buy a Sonata” ... Price gap narrows to as little as 1.05 million won, creating an “entry-car dilemma”

[Financial News] The price gap between Hyundai Motor Company’s compact sedan, the Elantra, and its midsize sedan, the Sonata, has narrowed to the 1-million-won range for some trim levels. The eighth-generation Elantra, fully redesigned for the first time in six years, has seen both its product appeal and price rise, while the Sonata has kept price increases to a minimum with its model-year update, intensifying the overlap in prices across trims.

According to News1 on the 11th, the 2.0-liter gasoline version of The All-New Elantra, launched last August, is priced at 23.98 million won for the Modern, 27.71 million won for the Premium and 31.52 million won for the Inspiration.
By contrast, the 2.0-liter gasoline version of the “2027 Sonata The Edge,” launched this month, comes in Premium at 28.76 million won, S at 30.28 million won and Exclusive at 33.21 million won.
The starting-price difference between the entry-level trims of the two models is 4.78 million won. But comparing their 2.0-liter gasoline Premium trims, the gap narrows to 1.05 million won.
In some price brackets, the pricing is even reversed. The Elantra’s top trim, the Inspiration, priced at 31.52 million won, costs 1.24 million won more than the Sonata 2.0 S at 30.28 million won and 2.09 million won more than the Sonata 1.6 Turbo Premium at 29.43 million won.
The Elantra’s price increase reflects its larger body and upgraded features. The new Elantra comes standard with a 2.0-liter engine producing 149 horsepower, replacing the previous 1.6-liter gasoline engine, and has grown to 4,765 mm in overall length with a 2,750 mm wheelbase. It also comes standard with the next-generation infotainment system Pleos Connect and the AI agent Gleo AI.
Prices for the hybrid models are expected to be reshuffled once tax incentives are factored in. The currently announced Elantra Hybrid prices are before tax incentives, at 30.42 million to 36.99 million won, while the Sonata Hybrid prices are after incentives, at 33.28 million to 40.52 million won. If tax reductions, including a cut to the individual consumption tax, bring the Elantra’s price down by around 1 million won, the gap between the top-trim Elantra Hybrid and the Sonata Hybrid Premium will narrow to the upper 2-million-won range.

However, the entry-level Elantra Modern is nearly 5 million won cheaper than the Sonata, maintaining its price competitiveness among first-time buyers just starting their careers and those looking for a commuter car.
An industry source analyzed, “More consumers may go in for a quote on a higher-trim Elantra and then trade up to a Sonata. It remains to be seen whether the established pattern of buying an Elantra for commuting and a Sonata as a family car will change.”

[email protected] Seong Min-seo Reporter