Hyundai Motor and Kia are struggling in Europe under pressure from Chinese electric vehicle makers. Hyundai Motor and Kia plan to counter by rolling out new small electric sport-utility vehicles (SUVs), which are in high demand in Europe.
According to the European Automobile Manufacturers' Association (ACEA) on the 1st, 312,369 electric vehicles were sold in the overall European auto market, including the European Union (EU), the United Kingdom, and the European Free Trade Association (EFTA), from January to February this year. That was up 22.2% from a year earlier.
During the same period, electric vehicles accounted for 18.8% of all vehicles sold in Europe. In particular, sales of electric vehicles rose noticeably in Germany (88,967 units), France (62,677 units), and the United Kingdom (51,494 units).
While the EV market grew, sales at traditional automakers fell. Analysts say this is because growth in the internal combustion engine market, where incumbents are strong, has stagnated, while Chinese companies' shares in the EV market have risen rapidly.
From January to February this year, Volkswagen Group sold 512,094 vehicles, down 1.1% from a year earlier; Renault Group sold 174,806, down 14.7%; and Toyota Group sold 139,396, down 7.2%. BMW Group fell 5.2% to 132,104, and Mercedes-Benz also slipped 0.7% to 87,490.
During the same period, Hyundai Motor and Kia also sold only 143,457 vehicles, down 8.4% from a year earlier. A Hyundai Motor Group official said, "Sales fell as the i10, a Europe-focused strategic model, was discontinued and Chinese electric vehicles increased their market share."
In particular, many of the electric models sold by Hyundai Motor and Kia are underperforming in Europe. Hyundai Motor's Ioniq 5 sold 1,639 units from January to February this year, down 35% from a year earlier. Kona EV sales were 3,764, down 1.6%. Kia is also seeing sales of key EVs such as the EV3 and EV6 decline from last year.
By contrast, Chinese EV maker BYD sold 36,069 vehicles in Europe from January to February this year, recording a 162% growth rate from a year earlier. SAIC Motor (SAIC) Group sold 41,454 vehicles, up 5% from a year ago.
Hyundai Motor and Kia plan to respond to the offensive by Chinese EV makers by successively launching new small-segment models that are in high demand in Europe.
Kia will begin sales in Europe of the EV2, a Europe-focused strategic model, starting in April. The EV2 is a small hatchback and Kia's second electric model to be built in Europe, following the EV4 hatchback. It is equipped with a 42.2 kWh Samsung SDI battery and has a driving range of 317 km on a single charge. There is also a long-range model with a 61 kWh nickel-cobalt-manganese (NCM) battery, offering a range of 453 km.
The EV2 starts at €26,670 in France (46.3 million won) and €26,600 in Germany (46.21 million won). BYD's competing small hatchback, the Dolphin Surf, sells for €19,990–€25,990 (34.7–45.11 million won) in France and €12,990–€30,990 (22.5–52 million won) in Germany.
Hyundai Motor will also unveil the Ioniq 3, a small electric SUV, for the first time in the world in Milan, Italy, in April. The official launch timing for the Ioniq 3 is in the second half of this year. It will be the first new model to carry Hyundai Motor's dedicated electric brand name "Ioniq" in about one year and five months since the launch of the Ioniq 9 in Nov. 2024, and it will be equipped with a Samsung SDI battery.
An industry official said, "As sales of cost-effective Chinese electric vehicles have recently increased in Europe, companies such as Volkswagen are also launching new models at low prices," adding, "With competition intensifying, Hyundai Motor and Kia will need to keep expanding their lineups by continuously introducing models optimized for local demand and tastes."