Hyundai is poised to unveil a new small electric vehicle (EV) concept at the Munich motor show in September, with production scheduled to commence early next year. This new model, to be officially named Ioniq 3, will position itself between the existing Inster and Kona EVs within Hyundai's expanding electric lineup. Despite being slightly smaller than the Kona EV, the Ioniq 3 promises a more sophisticated technological package, potentially leading to similar pricing.

The Ioniq 3 will be built on Hyundai's most modern EV platform and will feature front-wheel drive. Prospective buyers can expect a choice of two battery capacities: 58.3kWh or 81.4kWh, offering estimated WLTP ranges of approximately 260 and 365 miles, respectively. Performance-wise, it is projected to achieve 0-62mph in under eight seconds. The vehicle will incorporate a 400V electrical system, which, while more cost-effective, offers slightly slower charging times compared to the 800V setups found in its larger siblings, the Ioniq 5, Ioniq 6, and Ioniq 9. This model is also noted to be related to sister company Kia's EV3.

A significant highlight of the Ioniq 3 is its digital-forward approach and extensive connected technology. It will support advanced features such as Apple's CarPlay Ultra and offer a highly configurable interface for design customization. The vehicle will also include new synthesized EV sound effects, emphasizing its modern appeal. Hyundai is placing a strong bet on 'software-defined vehicles,' allowing the Ioniq 3 to be upgraded throughout its lifespan. Owners will have the flexibility to choose and download optional features, akin to phone applications, providing opportunities for used-car buyers to re-spec the vehicle to their preferences. Hyundai's proprietary operating system, Pleos, developed in collaboration with several major digital corporations, underpins these capabilities.

To optimize shipping and tariff costs, the Ioniq 3 will be manufactured in Turkey. This strategy aligns with Hyundai's existing European production footprint, where four-fifths of its European sales in 2024 originated from factories in the Czech Republic (producing Tucson, i30) and Turkey (producing i10, i20, Bayon). The addition of the Turkish-built Ioniq 3 is expected to bolster this 'local player' status, balancing the arrival of Korean-built models like the Inster.

According to Xavier Martinet, Hyundai's European boss, the Ioniq brand has rapidly ascended to become the number two EV brand in awareness surveys, trailing only Tesla. The success of models like the Ioniq 5, 6, and upcoming 9 has significantly elevated Hyundai's market position, with its average selling price in the UK having increased by 50% over the last five years. Martinet articulated a strategy to broaden market coverage by introducing more affordable options like the Inster and the Ioniq 3. Hyundai aims to achieve the same market share across all powertrain types—internal combustion engine (ICE), hybrid, plug-in hybrid (PHEV), and full-electric—and is even exploring range-extender EVs, which supplement battery power with a petrol generator. Martinet observed that while EV market growth is not as rapid as initially anticipated or as regulatory bodies project, once consumers experience an EV, they generally