After a period of stagnation, European electric vehicle sales are rebounding, prompting Hyundai Motor and Kia to target the market with compact, low-cost mass-market models that are in high demand in Europe.
According to the industry on the 2nd, Hyundai Motor is set to unveil the compact electric sports utility vehicle (SUV) Ioniq 2 (tentative name) concept car for the first time at the 'IAA Mobility 2025' event in Munich, Germany, this month. It is developed as a Europe-exclusive compact electric vehicle. The names Ioniq 2 or Ioniq 3 are expected.
The Ioniq 2, which will serve as the smallest model in the Ioniq series, is expected to go into mass production in the first half of next year. The aim is to capture demand for affordable electric vehicles, similar to the Casper Electric (export name: Instar) and Kona Electric, which are currently successful in Europe.
Recently, the European electric vehicle market is showing signs of revitalization, with the popularity of mass-market models known for their 'value for money' increasing. According to market research firm JATO Dynamics, electric vehicle sales in Europe in the first half of this year increased by 25% compared to the same period last year, reaching 1,193,397 units. This marks the first time the sales of electric vehicles in Europe have surpassed 1 million units in a half-year period.
Among the most sold electric vehicle models in Europe in the first half of the year, a significant portion were compact mass-market models. These include Volkswagen's ID.4, ID.3, Kia EV3, Renault 5 Electric, Škoda Elroq, Enyaq, and Volvo EX30. Although Tesla's Model Y and Model 3 also rank among the top, their sales have decreased by over 30%.
The popularity of the smaller micro compact electric vehicle Casper Electric continues to be steady. Casper Electric surpassed 10,000 units in sales just six months after its local launch at the end of May this year. From January to July this year, a total of 27,571 units were exported, of which 15,161 units were headed to Europe, accounting for about 55% of total exports.
Kia plans to strengthen its competitiveness in the European market by leveraging the success of its first mass-market electric vehicle EV3 as a stepping stone for the EV4 sedan and hatchback models. The EV3 has sold 39,334 units in Europe from January to July this year, which is 2.7 times the domestic sales of 14,724 units during the same period.
Production of the EV4 hatchback began at the Žilina plant in Slovakia on the 20th of last month, and sales are set to begin in key markets, including the United Kingdom, starting in October. The EV4 hatchback is a European strategic model of the electric sedan EV4 launched domestically.
Starting early next year, production of the EV2, an electric SUV that is smaller and cheaper than the EV3, will also commence at the same plant. The EV2 will also be a European strategic model like the EV4 hatchback. Kia has set annual sales targets of 80,000 units for the EV4 hatchback and 100,000 units for the EV2.
The expected price of the EV2 is around 30,000 euros, which is projected to fall below the starting price of 35,000 euros for the EV3. Since 30% of vehicles sold in Europe are priced between 30,000 and 35,000 euros, the EV2 is expected to attract customers who find the EV3 price burdensome.