Hyundai and Kia shift to lower-priced EVs
Korean automakers Hyundai and Kia are planning to release more affordable electric vehicles to mitigate the impact of new US tariffs. Hyundai is preparing to unveil a new entry-level electric car soon, which will be alongside the Kia EV2. Could this be the IONIQ 2?
Hyundai and Kia currently offer some of the most affordable and efficient electric vehicles on the market, including models like the IONIQ 5 and EV6.
In Europe, Korea, Japan, and other overseas markets, Hyundai sells the Inster EV (also known as the Casper Electric in Korea), an electric city car. The Inster EV starts around $27,000 (€23,900), but Hyundai will soon offer another lower-priced EV, similar to the upcoming Kia EV2.
The Inster EV is experiencing strong initial demand in Europe and Japan. According to a local report (via Newsis), demand for the Casper Electric is so high that buyers are waiting over a year for delivery.
Hyundai is doubling down with plans to introduce an even more affordable EV, rumored to be the IONIQ 2. Xavier Martinet, CEO of Hyundai Motor Europe, stated in a recent interview that “The new electric vehicle will be unveiled in the next few months.”
The Kia EV3 starts at €35,990 in Europe and £33,005 in the UK, or approximately $42,000. Kia’s compact electric SUV is the UK’s most popular EV in the first half of the year.
Like the Hyundai IONIQ models and Kia’s other electric vehicles, the EV3 is based on the E-GMP platform. It’s available with two battery pack options: 58.3 kWh or 81.48 kWh, providing a WLTP range of up to 430 km (270 miles) and 599 km (375 miles), respectively.
Hyundai is expected to reveal the new EV at the IAA Mobility show in Munich in September. Meanwhile, Kia is working on a smaller electric car to compete with the EV2 that could start at under €25,000 ($30,000).
According to a report, Hyundai and Kia are doubling down on lower-priced EVs to balance potential losses from the new US auto tariffs.
Despite opening its new EV manufacturing plant in Georgia to boost local production, Hyundai is still expected to expand sales in other regions. An industry insider explained, “Considering the risk of US tariffs, Hyundai’s move to target the European market with small electric vehicles is a natural strategy.”
Although Hyundai is expanding in other markets, it remains a leading EV brand in the US. The IONIQ 5 remains a top-selling EV with over 19,000 units sold through June.
After delivering the first IONIQ 9 models in May, Hyundai reported that over 1,000 models had been sold through the end of June, its three-row electric SUV.
While the $7,500 EV tax credit is still available, Hyundai is offering significant savings with leases for the 2025 IONIQ 5 starting as low as $179 per month. The three-row IONIQ 9 starts at just $419 per month. Additionally, Hyundai is including a free ChargePoint Home Flex Level 2 charger with both models.
Unfortunately, we likely won’t see the budget-friendly EV2 or IONIQ 2 in the US. However, Kia is set to launch its first electric sedan, the EV4, in early 2026.
Ready to take advantage of the savings while they are still available? You can use our links below to find deals on Hyundai and Kia EV models in your area.
I’m Rohan Mehta, the voice behind KhelRe—a trusted and steadily growing blog dedicated to electric vehicles (EVs) in India. With over five years of experience as a tech and automotive blogger, I turned my frustrations with owning an EV into a mission: to help others make more intelligent choices in this fast-evolving world of electric mobility.
I’ve been an early adopter of EV technology—I repurchased my first electric scooter in 2019. That experience opened my eyes to both the promises and the pitfalls of this new mode of transport. From slow charging times and range anxiety to misleading specs and hidden costs, I’ve faced it all. But instead of walking away, I decided to write about it.
That’s how KhelRe was born—a no-nonsense, hands-on blog where I share practical, real-world reviews of EV cars, bikes, and scooters. I break down features, range, performance, and pricing from a user-first perspective. I take pride in simplifying complex tech into clear, valuable insights—offering tips, ownership stories, and advice you won’t find in flashy press releases or sales brochures.
Whether you’re a first-time EV buyer or just a curious auto enthusiast, my goal is to help you navigate the EV landscape with confidence. My motto: “EV knowledge should come from experience, not just brochures.”
When I’m not test-driving the latest e-scooter or comparing charging networks, you’ll probably find me tinkering with my garage EV setup, chatting with fellow enthusiasts online, or sipping chai while writing my next blog post from a cosy local café.
