Hyundai, Kia eye EV market in Europe with new cheaper models

EV sales in Europe are rising, prompting Hyundai and Kia to expand their lineup of compact and cheaper models for the region.

Hyundai, based in South Korea, plans to unveil a small electric SUV concept, expected to be called the Ioniq 2 or Ioniq 3, at the IAA Mobility 2025 event in Munich this month.

The company aims to begin production of the model in the first half of next year, targeting demand for cheaper EVs after the Casper Electric and Kona Electric.

Kia, also headquartered in South Korea, started production of the EV4 hatchback in Slovakia in August, with sales set to begin in major European markets from October.

Production of Kia’s smaller EV2 SUV is planned to begin in Slovakia early next year.

Kia expects the EV2 to be priced below €35,000 (US$40,590).

🔗 Source: Chosun Biz

🧠 Food for thought

1️⃣ European buyers are driving a shift toward affordable electric vehicles

The European EV market’s 25% growth in the first half of 2025 reveals a clear preference for smaller, budget-friendly models over premium offerings.

Sales data shows that affordable compact EVs like the Volkswagen ID.3, Kia EV3, and Renault 5 Electric dominated the European market, while Tesla’s Model Y and Model 3 saw their sales drop by over 30% despite remaining in the top-selling rankings1.

This trend is particularly evident in the €30,000-€35,000 price segment, which represents 30% of all European car sales1.

Kia’s upcoming EV2, priced at around €30,000, directly targets this sweet spot, undercutting their successful EV3 model by €5,000 to capture price-sensitive customers1.

The shift suggests European consumers are moving beyond early-adopter enthusiasm for premium EVs toward practical, everyday electric transportation that competes directly with traditional combustion engines on both price and functionality.

2️⃣ Korean automakers are restructuring their global strategy around Europe

Hyundai and Kia’s production and sales decisions reveal a strategic pivot away from the U.S. market toward Europe as their primary growth engine.