Hyundai Motor and Kia are struggling in Europe under pressure from Chinese electric vehicle makers. Hyundai Motor and Kia plan to strike back by launching new small electric sport utility vehicles (SUVs), which are in high demand in Europe.
According to the European Automobile Manufacturers' Association (ACEA) on Apr. 1, a total of 312,369 electric vehicles were sold in the entire European car 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 increased markedly in Germany (88,967 units), France (62,677 units), and the United Kingdom (51,494 units).
While the electric vehicle market grew, sales by traditional automakers declined. Analysts say this is because growth in the internal combustion engine market, where legacy companies are strong, has stalled, while Chinese companies have rapidly expanded their share in the electric vehicle market.
From January to February this year, Volkswagen Group sold 512,094 units, down 1.1% from a year earlier; Renault Group sold 174,806 units, down 14.7%; and Toyota Group sold 139,396 units, down 7.2%. BMW Group fell 5.2% to 132,104 units, and Mercedes-Benz also slipped 0.7% to 87,490 units.
During the same period, Hyundai Motor and Kia also sold only 143,457 units, down 8.4% from a year earlier. A Hyundai Motor Group official said, "Sales fell because the i10, a Europe-focused strategic model, was discontinued and Chinese electric vehicles increased their market share."
In particular, many of the electric vehicle 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. Sales of the Kona EV were 3,764 units, down 1.6%. Kia is also seeing declines from last year in sales of key electric vehicles such as the EV3 and EV6.
By contrast, Chinese electric vehicle maker BYD sold 36,069 units in Europe from January to February this year, posting a 162% growth rate from a year earlier. SAIC Motor (SAIC) Group sold 41,454 units, up 5% from a year earlier.
Hyundai Motor and Kia plan to roll out a series of new small-segment models that are in high demand in Europe to counter the offensive by Chinese electric vehicle makers.
Kia will begin selling the EV2, a Europe-focused strategic model, in Europe starting in April. The EV2 is a small hatchback and the second electric model made in Europe, following the EV4 hatchback. It is equipped with a 42.2kWh battery and has a driving range of 317km on a single charge. There is also a long-range model reported to use a 61kWh Samsung SDI nickel-cobalt-aluminum (NCA) battery, with a driving range of 453km.
The starting price of the EV2 is set at €26,670 (46.3 million won) in France and €26,600 (46.21 million won) in Germany. The Dolphin Surf, BYD's competing small hatchback, 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 of the Ioniq 3 is in the second half of this year. About one year and five months after the Nov. 2024 launch of the Ioniq 9, this new model will carry Hyundai Motor's dedicated electric brand name "Ioniq" and will be equipped with Samsung SDI's battery.
An industry official said, "As sales of Chinese electric vehicles with strong value for money have recently increased in Europe, companies such as Volkswagen are also launching new models at lower prices," adding, "With competition intensifying, Hyundai Motor and Kia should continue to introduce models optimized for local demand and tastes while steadily expanding their lineups."