Hyundai Ioniq 2: The Affordable Small EV That Could Reshape Europe’s Electric Market
When an automaker already has a successful lineup with models like the Hyundai Ioniq 5, Ioniq 6, and the recently announced Ioniq 9, it’s only natural to speculate about the missing numbers in the family. Hyundai has now confirmed that it will reveal a small electric concept at this autumn’s Munich Motor Show – a vehicle widely believed to evolve into the Hyundai Ioniq 2, expected in production form by spring 2025.
Recently, spy photographers captured the heavily camouflaged prototype during testing. Even under wraps, the design cues are unmistakable: sharp LED signature lighting in the signature Ioniq style and compact proportions that place it below the new Hyundai Inster EV.
Built on a modified version of the E-GMP platform – the same modular electric architecture underpinning the Ioniq 5, 6, and 9 – the Ioniq 2 will aim to deliver the same advanced technology in a smaller, more affordable package.
Another highlight is the debut of Hyundai’s new software ecosystem, Pleos. This next-generation platform integrates powertrain management, infotainment, connectivity, and over-the-air updates into a single seamless experience. It marks a major step forward compared to Hyundai’s current digital offerings, emphasizing customer data integration and personalization.
Hyundai Motor Europe’s CEO Xavier Martinet explained:
“Connectivity is changing our relationship with the customer. We’re able to get data on a daily basis, not once a year. It’s the next frontier in terms of customer relationship.”
The Ioniq 2 will be designed and built in Europe, reflecting Hyundai’s commitment to local production. Although Hyundai traditionally follows an 80% global / 20% local sourcing strategy, compact EVs for Europe will prioritize regional assembly. Martinet pointed out that 79% of Hyundai’s European sales in 2024 were produced in Turkey and the Czech Republic – and while that ratio will shift slightly with Korean-built models like the Inster, the Ioniq 2 aims to maintain a strong European footprint.
Pricing strategy will also be crucial. While the Ioniq 5, 6, and 9 push Hyundai further into the premium EV space, the Ioniq 2 is designed to be an affordable entry point into the electric Ioniq family. It will compete directly against the Volkswagen ID.2, Renault 5 EV, and the Kia EV2, which shares the same E-GMP platform. This ensures that Hyundai isn’t abandoning smaller, cost-conscious buyers despite a 50% rise in average Hyundai prices in the UK over the past five years.
Hyundai’s scale and flexibility could give it an edge in the face of rising tariffs, protectionist trade policies, and global supply chain pressures. Martinet stressed Hyundai’s proactive approach:
“In every crisis there is an opportunity. While others shrink, we invest. That’s how Hyundai continues to lead.”
With its European focus, compact size, new Pleos software, and affordability, the Hyundai Ioniq 2 could be the EV that significantly broadens Hyundai’s customer base – and perhaps even redefine the entry-level electric car market in Europe.
