Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Motor, Kia double down on European EV market as US subsidy cut looms
Hyundai Motor CEO Jose Munoz poses with the carmaker's IONIQ 9 electric SUV during its launch event at the Goldstein House in Los Angeles, Nov. 21, 2024. Courtesy of Hyundai Motor
By Lee Min-hyung
Hyundai Motor set to unveil IONIQ 2 concept model in September
Hyundai Motor and Kia are zeroing in on the lucrative European electric vehicle (EV) market to offset a potential fall in eco-friendly vehicle sales in the United States ahead of the planned termination of EV subsidies.
The Donald Trump administration plans to stop offering federal EV subsidies starting in October, clouding the outlook for Hyundai Motor Group’s EV sales growth as the carmaker also grapples with the aftermath of the blanket 15 percent tariff imposed by the U.S.
The current situation highlights the need for the company to focus more on boosting EV sales in Europe, where demand for eco-friendly vehicles is rising rapidly.
Hyundai Motor Group is one of the few global carmakers that sells a full lineup of price-competitive EVs, from compact SUVs to sedans.
According to data from market tracker SNE Research, the number of newly registered EVs across the globe soared to some 9.47 million in the first half of this year, up by 31.8 percent from a year earlier.
Europe is the world’s second-largest EV market, accounting for 20.6 percent of global sales, following China, which leads with 63.2 percent.
Given that the Chinese EV market is dominated by domestic players, Hyundai Motor Group is eyeing more robust growth in the European market.
Kia's EV3 compact electric SUV / Courtesy of Kia
The carmaker plans to showcase a prototype of its new entry-level electric SUV — tentatively named the IONIQ 2 — during the upcoming IAA Mobility 2025, which kicks off its four-day run on Sept. 9 in Munich.
The move reflects the firm’s strong commitment to expanding its presence in the European market. As Europe has strong demand for compact and practical eco-friendly cars, the carmaker sees the upcoming mobility fair as an ideal venue to debut the new model.
“Hit by the tariff imposition and reduced EV incentives from the U.S., Europe will become a major battlefield for global EV makers during the Trump presidency,” an auto industry official said.
“Hyundai Motor Group has a competitive edge in EVs over other global carmakers due to its broad vehicle lineup and price competitiveness, which raises hope for their deeper inroads into the market once they finish building the complete EV lineup.”
In February, Kia also held its 2025 EV Day in Barcelona, Spain, unveiling the EV2 concept model. This is seen as the carmaker’s strong willingness to boost its EV presence in Europe, particularly with such a price-competitive and compact lineup.
Both Hyundai Motor and Kia are also scheduled to start sales for their midsize and large EV models in Europe by the end of this year. They include Hyundai Motor’s IONIQ 9 three-row family SUV and Kia’s flagship electric sedans, such as the EV4 and EV5.