Hyundai Ioniq 2 targets Europe with affordable hatchback

Hyundai plans an affordable Ioniq 2 to expand in Europe and close the gap with its Kia sibling.

Hyundai Ioniq 2 targets Europe with affordable hatchback

Hyundai is lining up an affordable Bayon sized EV to compete with the Renault 4 in Europe. The model, likely badged Ioniq 2, is said to sit between Hyundai's Bayon and Kona Electric and will be paired with Kia’s incoming EV2 as part of a shared platform strategy. It is expected to be revealed at the Munich motor show next month and go on sale in the third quarter of 2026. In the first half of 2025 Hyundai sold 265,680 cars in Europe, just 7,939 behind its Kia sibling, underscoring the push to broaden electrified offerings.

Spy shots show the Ioniq 2 as a raised hatch with a sloped roofline, echoing the design language of the Ioniq 6. The car would sit in a growing compact EV hatchback segment that includes the Renault 4, with rivals like VW ID 2X and Skoda Epiq also on the horizon. The model thread connects to a wider plan to broaden Hyundai and Kia’s European foothold while expanding their electrified mix.

Hyundai is using a shared platform with Kia to spread cost and speed up electric vehicle rollout. By targeting the affordable end of the hatchback market in Europe, the two brands hope to attract first time EV buyers and convert more buyers to electrified models. The Renault 4 and upcoming rivals show the segment is heating up, which puts pressure on margins but also creates scale. A successful Ioniq 2 could lift Hyundai’s European sales and demonstrate the value of a joint Hyundai-Kia electrification strategy without eroding brand distinctness.

The move also tests whether European demand for compact city EVs can sustain higher volumes at lower price points. If Hyundai can balance cost control with essential features, the Ioniq 2 might help the brand close the gap with Kia while offering a clearer path to mass market electrification in a region that is pivotal for global EV adoption.

Highlights

The Ioniq 2 will prove if price can unlock real EV volumes in Europe.