Hyundai is developing an affordable EV for Europe that would cost roughly $20,000, the automaker's European marketing boss said in a recent interview with Automotive News Europe.
This entry-level model would be a "battery-powered minicar" priced at 20,000 euros, Hyundai's Andreas-Christoph Hofmann said. With the current parity of the dollar to the euro, that would also make it a $20,000 EV today. For reference, the cheapest Hyundai EV currently sold in the United States is the Kona Electric, which starts at $35,295 with destination.
However, Hofmann said this affordable EV may take some time to develop. He noted that minicars in general are tough to sell profitably because of their low pricing, and said electrifying them could present technical challenges.
Hyundai Seven concept
But Europe already has a number of pint-sized EVs on sale, including the second-generation Fiat 500e and the retro Honda E. Neither is sold in the United States. Volkswagen has also teased the idea in a few different iterations, including the $24,000 ID.Life concept.
It's unclear whether such a model would be part of the Ioniq family, in which each member makes a very different design statement. The next Ioniq model due is the Ioniq 7 three-row SUV, which Hofmann said was mainly conceived for the U.S. due to its size, but will also be sold in Europe.
The cheapest EVs currently sold in the U.S. are the Nissan Leaf and Chevrolet Bolt EV, which both start in the mid-$20,000 range. Do you think there is room in this market for something even less expensive? Is there U.S. demand for a $20,000 EV like the one Hyundai is reportedly developing?