Hyundai is working on a cheaper EV, the Ioniq 2

Hyundai has made more progress toward electrification than many automakers, but it hasn’t yet cracked the affordable EV code. That’s changing in the near future with a new model that slots into its lineup beneath the Ioniq 5 electric SUV and Ioniq 6 sedan.

Electrek reported that Hyundai’s EV exports have doubled in the past two years, with more than 218,000 shipped in 2022. The company had a record-breaking November 2023, too, noting that electric vehicles have given it a significant boost in conquering global markets.

Hyundai Europe VP of marketing Andreas-Christoph Hofmann hinted at a smaller, cheaper Ioniq 2 earlier this year, telling Automotive News,” Everybody in the industry knows the target of this kind of vehicle is 20,000 euros.”  Even so, the car is expected to have a reasonable range estimate and a new platform that helps cut manufacturing costs.

If Hyundai can pull the affordable car off, it will be one of the first. Several automakers are pushing toward more affordable EVs, but so far, none have been able to slash prices as far as Tesla has with its more recent Model 3 price cuts. The Chevrolet Bolt is a fantastic and affordable vehicle, but it’s being discontinued in favor of a different configuration in a couple of years. Advances in battery technology and manufacturing refinements have reduced materials and production costs, so costs are set to fall over the next few years.

The cheaper cars can’t come soon enough. Price remains a hurdle for many buyers, as EVs are still significantly more expensive than comparable gas models. Hyundai’s current Ioniq EVs are far from the most expensive models on sale, but they’re not currently eligible for federal tax credits, leaving them more expensive than competitors from Tesla, Ford, and others, though the new Kona EV is surprisingly cheap, at $33,000.