Hyundai & Kia Target Europe's Growing Compact EV Market

 

Hyundai and Kia are strengthening their European presence as EV sales in the region surged by 25 percent in the first half of 2025, driven by demand for compact, affordable models.

Consumers increasingly prefer EVs priced between €30,000–€35,000, which account for 30 percent of total European car sales, over premium options. Hyundai is set to debut a small electric SUV concept—expected to be named Ioniq 2 or Ioniq 3—at the IAA Mobility 2025 event in Munich, with production scheduled for the first half of 2026.

Positioned below the Casper Electric and Kona Electric, this model aims to compete in the growing budget EV segment.

Key Highlights

• Hyundai to unveil Ioniq 2/3 small EV SUV at IAA Munich 2025
• Kia begins EV4 production in Slovakia, EV2 launch in 2026
• Compact EVs priced €30k–€35k now dominate European sales

Kia, meanwhile, has begun producing the EV4 hatchback at its Slovakia facility, with European sales starting in October. The company also plans to launch the EV2, a compact SUV priced below €35,000, with production beginning in Slovakia early next year. Kia projects ambitious sales of 80,000 units annually for the EV4 and 100,000 for the EV2.

This European pivot comes as U.S. EV subsidies end, pushing Hyundai and Kia to prioritize Europe, which now represents 20.6 percent of global EV sales. The strategy is already paying off: Kia’s EV3 sold 39,334 units in Europe in the first seven months of 2025—nearly triple its domestic sales—while Hyundai’s Casper Electric shipped 55 percent of exports to Europe, crossing 10,000 units in just six months.

Also Read: Hyundai Motor Group to Invest USD 26 Bn in US by 2028

Together, Hyundai and Kia are betting on Europe’s compact EV boom to secure long-term growth.