Toyota Camry Faces Competition: Hyundai Slashes Sonata Prices – What You Need to Know

Toyota Camry Dominates the US Market
Hyundai Takes Action
Slashed Price for the New Sonata?

Hyundai has unveiled the 2025 Sonata for the US market, creating a buzz with its unexpected price cut. Industry experts suggest this move is a strategic response to Toyota’s recent price adjustment for the Camry, the country’s leading mid-size sedan.

Hyundai Motor America (HMA) recently released details about the 2025 Sonata. The base SE trim is priced at $26,650. The SE trim has been reintroduced, with a $850 price cut over the previous model’s base SEL trim.

The SE trim includes only essential features compared to the Camry’s pricing

For the 2025 Sonata SE, 16-inch alloy wheels, a 12.3-inch touchscreen, wireless Android Auto and Apple CarPlay, push-button ignition, and automatic headlight control are standard equipment. It has been confirmed that other non-essential specifications have been excluded from the basic specifications, lowering the price compared to the previous entry trim.

Toyota previously launched the 2025 Camry, Sonata’s rival and the best-selling passenger vehicle in the US. The Camry’s starting price is $28,400, and the top-of-the-line XSE trim is $34,600.

Is the Camry Still the Best Value?
Differences in Powertrain Exist

This is cheaper than the current 2024 Camry. With a price cut of $300 to $455, Hyundai aims to win on price as high interest rates and the economic recession continue. Hyundai has gained an advantage in starting price with this Sonata model year change, but the industry says it is” not cost-effective compared to the Camry.”

The base Sonata model has a 2.5-liter gasoline naturally aspirated engine. However, the Camry has a relatively more expensive hybrid engine. If we change the comparison target to the Sonata Hybrid, the starting price is $31,000, about $2,534 more expensive than the Camry.

Hyundai Strengthens Its Lineup
Enhances Pickup Truck Competitiveness

Hyundai appears to be strategically addressing its market challenges by expanding beyond sedans and reinforcing its existing vehicle lineup. Recognizing the substantial size of the US pickup truck market, the company has introduced a refreshed version of the Santa Cruz, its local strategic pickup model.

The 2025 Santa Cruz is priced at $28,500, marking a $1,600 increase over the 2024 model. This price adjustment is aimed at enhancing profitability rather than boosting market appeal. Hyundai Motor America has announced that deliveries of the 2025 models, including the Sonata and Santa Cruz, will commence sequentially starting in September 2024.