Hyundai Concept Three compact EV debuted at IAA Mobility 2025

Hyundai Motor Company has unveiled its all-electric Concept THREE at IAA Mobility 2025 in Munich. The vehicle marks Hyundai’s first compact electric vehicle (EV) concept under the Ioniq sub-brand, and is still a long way away from a close-to-production-ready build.

The Concept Three previews Hyundai’s next small Ioniq model, potentially the Ioniq 3 hatch, and could serve as an indirect successor to the petrol-powered i30 hatch. The compact EV is in line with Hyundai’s ongoing efforts to electrify its lineup, with plans to offer an electrified version of every model in Europe by 2027 and introduce 21 EV models globally by 2030.

Global reveal of Concept Three

Concept Three represents Hyundai’s move into the compact EV segment, complementing its existing midsize and large EV models. The car is designed to meet rising European demand for urban-friendly, space-efficient electric vehicles.

Key points from the debut:

• Concept Three is Hyundai’s first compact EV concept under the Ioniq sub-brand.
• It is positioned to appeal to urban customers seeking practical, sustainable, and engaging mobility solutions.
• The vehicle reflects Hyundai’s broader European electrification strategy, emphasising clean energy and sustainable transport.

“Concept Three represents the next step in Hyundai Motor’s electrification journey. With its compact dimensions and Art of Steel design language, it embodies our vision of delivering mobility that is practical, accessible, and emotionally resonant,” said Xavier Martinet, President and CEO of Hyundai Motor Europe.

Design highlights

Concept Three introduces Hyundai’s Art of Steel design language and several innovative features:

Exterior design:

• Art of Steel: Uses advanced steel technologies to create flowing volumes and precise lines, combining strength with sculptural aesthetics.
• Aero Hatch: Three-surface sculpted body with intersecting lines, aerodynamic roofline, and vertical tailgate. One can almost see a nostalgic similarity to the Hyundai Veloster in that rear end.
• Parametric Pixel Lighting: Gradient pixel lighting at front and rear adds visual depth.
• Material-driven Finish: Anodised-effect exterior finished in Tungsten Gray with lemon-tinted glass and matching wheels.

Interior design:

• Furnished Space: Cabin prioritises comfort, intuitive layout, and a calm environment with the dual-tone upholstery using Moonbeam Yellow. It does have more of a hot-hatch layout prioritising the front seats with the rear seats suitable mainly for kids.
• Customisable Experience: Modular ‘Bring Your Own Lifestyle (BYOL)’ widgets for personalised features.
• Mr. Pix Character: Integrated symbolic character for playful storytelling and emotional connection.
• Sustainability: Use of ocean waste textiles, recycled wool, plastics, and lightweight aluminium foam.

Concept Three specifications

It is not yet confirmed what platform the production version derived from Concept Three will use, or whether front-wheel-drive, rear-wheel-drive, or performance variants will be offered. Hyundai’s N performance division has previously dropped hints at developing a small electric hot hatch based on this concept in the future.

Hyundai’s EV strategy to expand in Europe

Hyundai sees Europe as a central market for its EV expansion due to urbanisation trends, environmental regulations, and demand for compact, sustainable vehicles.

European electrification roadmap:

• Offer electrified versions of all models in Europe by 2027.
• Launch 21 global EV models by 2030.
• Advance hydrogen fuel cell technology.
• Transition production facilities to renewable energy and increase the use of recycled materials.

Nearly 80% of Hyundai vehicles sold in Europe are locally manufactured, reflecting the company’s ability to adapt to regional mobility needs. The Concept Three will not be Hyundai’s smallest EV; that distinction belongs to the Inster, which is not part of the Ioniq family and is built on a gasoline-derived platform rather than a dedicated EV architecture.

Final thoughts

Concept Three underscores Hyundai’s focus on compact urban EVs, innovative design, and sustainability. It could be another year or two before we see the showroom-ready specification of this concept EV. While suitable for the Australian environment, the popularity of crossovers and SUVs make the compact Hyundai EV an unlikely candidate for our market.