Hyundai Unveils Ioniq 3 as European Tariff Advantage Boosts EV Strategy

Hyundai Motor Co. has launched its inaugural compact electric vehicle (EV) as part of the Ioniq brand targeting the European market. This move seeks to capitalize on tariff benefits over Chinese carmakers, according to a Pulse report by Maeil Business Newspaper Korea. The car, introduced as Concept Three at the Internationale Automobil-Ausstellung (IAA) Mobility 2025 event in Munich, marks Hyundai's return to the showcase after a four-year hiatus. Xavier Martinet, who leads Hyundai's European operations, confirmed production of the vehicle will commence in Turkey by 2026. The 'Concept Three' name suggests it will likely be marketed as the Ioniq 3, covering six EV segments in Europe.

Concept Three represents Hyundai's first compact model in the Ioniq series, adopting a hatchback style favored in Europe and featuring a rear spoiler aimed at performance enthusiasts. Its exterior boasts a steel-inspired look, while the interior reflects furniture-like design elements for comfort and elegance, as detailed by Hyundai. This venture aligns with Hyundai's plans to recalibrate its global market presence, especially with U.S. tariffs in consideration. The installer EV, released in Europe in December 2024 and domestically known as the Casper EV, sold 15,161 units by July 2025.

Korean vehicle manufacturers benefit from zero tariffs within the EU under a 2010 Korea-EU Free Trade Agreement, contrasting the 25% tariffs they face in the U.S. Non-FTA brands incur a 10% tariff. In comparison, EU-imposed tariffs on Chinese EVs range between 10-30%, addressing potential local job threats and subsidy disparities. China's growth in the sector has consequently slowed, with BYD Co. planning a new plant in Hungary following its 12th ranking among EV brands. Kia Corp., having advanced in Europe with the EV3, is setting the stage for the compact EV2, priced below 30,000 euros (USD 35,000), alongside unveiling the EV5 SUV. Meanwhile, Volkswagen AG focused on hatchbacks and crossovers, presenting its ID.Cross SUV concept.

Simultaneously, LG Electronics Inc. participated in the showcase, revealing its automotive content platform powered by the webOS system, which operates in over 240 million smart TVs. This platform facilitates seamless in-car streaming of services like Netflix and Disney Plus. (ANI)