Hyundai Motor to release affordable EVs in Europe, China in 2026

Hyundai Motor President Jang Jae-hoon answers reporters’ questions after the ‘2024 CEO Investor Day’ on the 28th of last month. [Courtesy of Hyundai Motor Co.]

South Korean auto giant Hyundai Motor Co. plans to introduce a new line of budget-friendly electric vehicles (EVs) tailored specifically for Europe and China in 2026.

According to industry sources on Thursday, Hyundai Motor has completed the development of a compact EV for China and a subcompact EV for Western Europe, both set for release in 2026.

The company is currently considering several brand names for these new models.

The upcoming EVs will use lithium iron phosphate (LFP) batteries instead of Hyundai‘s proprietary Electric Global Modular Platform (E-GMP), aiming to enhance price competitiveness.

While Hyundai has launched exclusive EVs like the Mistra EV and Lafesta EV in China, it is the first time that the company is launching an EV model tailored for the European market.

With Europe’s strong demand for smaller cars and increasing competition from Chinese EVs, Hyundai Motor’s move is seen as a strategic effort to counter Chinese companies in the global market.

Hyundai Motor aims to boost its market share with budget-friendly EVs, priced between 20 million to 30 million won ($15,000 to $22,500), amid a prolonged slowdown in EV demand.

As other global automakers scale back their electrification strategies, Hyundai Motor remains committed to securing its position as an industry leader.

The company plans to continue developing premium EVs such as the IONIQ series, which use E-GMP and lithium-ion batteries, while expanding its lineup of affordable models to strengthen its overall EV portfolio.

Hyundai Motor Group is expected to conclude its first-generation E-GMP models this year with the launch of the IONIQ 9, a large electric sport utility vehicle (SUV). The company is now focusing on developing its second-generation E-GMP platform with enhanced performance.

Since introducing the IONIQ 5 in 2021, Hyundai Motor has targeted the mid-size SUV market, the largest segment of EV buyers.

In July, the company launched the subcompact electric SUV Casper Electric and plans to unveil the IONIQ 9 at the Los Angeles Auto Show in November.

With the IONIQ 9’s release, Hyundai will have an EV lineup that spans from compact to large models and from budget to luxury categories. Hyundai currently offers nine EV models, including three Genesis models and two commercial vehicles, and aims to expand its lineup to 21 models by 2030.