Hyundai is gearing up to introduce a more economical addition to its electric vehicle lineup, the IONIQ 2, positioned below the well-received IONIQ 5 SUV. This strategic move aligns with Hyundai’s ambitious goal of securing a top-three spot among EV manufacturers by 2030, a commitment shared by the wider Hyundai Motor Group, which includes Kia. Together, they aim to sell an impressive 3.6 million electric vehicles by the end of the decade.
The company’s initial foray into dedicated EVs with models like the IONIQ 5 and the upcoming IONIQ 6 has shown promising results. Hyundai recently achieved a record in exports, propelled notably by the increasing demand for electric vehicles. These EVs are playing a pivotal role in Hyundai’s pursuit of global leadership in the electric vehicle market. Notably, Hyundai’s EV exports have doubled over the past two years, surpassing 218,000 units in 2022. Looking ahead, the company is poised to introduce key new models to further bolster its EV lineup.
Among these upcoming releases is the Hyundai IONIQ 7, a three-row electric SUV that was recently spotted during testing and is expected to make its official debut in the coming year. In a bid to diversify its electric vehicle offerings, Hyundai is actively working on developing the IONIQ 2, following in the wake of Volkswagen’s ID 2all concept. Andreas-Christoph Hofmann, Hyundai Europe’s VP of marketing, confirmed plans for the more affordable IONIQ 2, setting a target price around €20,000, akin to Volkswagen’s concept.
Hyundai is striving to equip the IONIQ 2 with a range of at least 250 miles, aiming to achieve this through its next-generation IMA platform, revealed during its 2023 investor day. This platform, a significant advancement over its current E-GMP platform, is anticipated to substantially reduce production costs. Hyundai anticipates that the IMA platform will power a total of 13 new EVs across its Hyundai, Kia, and Genesis brands by 2030, catering to various vehicle classes, from small SUVs to pickup trucks. Moreover, it will serve as the foundation for a flagship Genesis model.
In the broader context of the automotive industry, Hyundai is just one of several companies striving to bring more affordable EVs to the market. Factors like declining raw material costs, especially in lithium-ion battery packs, have contributed significantly to this trend. Automakers are also embracing new technologies and cost-effective battery chemistries to enhance efficiency and drive down EV prices further. BloombergNEF forecasts predict a continued decline in battery prices, reaching $113 per kWh by 2025 and $80 per kWh by 2030, further supporting the feasibility of affordable electric vehicles.
Furthermore, Hyundai has already announced plans for the 2024 Kona Electric to be one of the most competitively priced EVs in the United States, with a starting price below $33,000, demonstrating the company’s commitment to accessibility in the EV market.