Hyundai shelves Ioniq 3 Aussie launch due to import costs

Key highlights:

• Hyundai cancels Australia’s planned Ioniq 3 launch
• High import costs make the compact EV business case difficult
• Hyundai has yet to name its Australian Ioniq 3 replacement

Hyundai has cancelled plans to bring the Ioniq 3 electric hatchback to Australia, ending its proposed challenge to the MG 4 and BYD Dolphin, as the company says the pricing numbers no longer stack up.

Hyundai Australia had planned to launch the Ioniq 3 in early 2027, but it has now quietly removed the model’s expressions-of-interest page from its website. The company says the import costs would push the car into a segment where buyers remain highly price-sensitive.

Import costs make Ioniq 3 too expensive

The Hyundai Ioniq 3 is built in Turkey, rather than South Korea like other Hyundai models sold in Australia. A Hyundai Australia spokesperson said the business case had become “too difficult” because of the car’s import cost and the competition it would face.

“The cost of importation is high, and the car will be fighting in a very price-sensitive segment. The numbers just don’t work for us given the competition.”

The Ioniq 3 had previously been estimated to start at around $40,000 before on-road costs, while a long-range, top-specification N Line could approach $55,000. That would put it well above its closest rivals.

Ioniq 3 shares a factory with i20 N

The Turkish factory producing the Ioniq 3 currently also builds the Hyundai i20 N hot hatch for Australian showrooms, and the i20 N is now selling at $37,500 plus on-road costs. That car operates in a less price-sensitive part of the market than compact EVs.

Its closest rivals in recent years, the now-defunct Volkswagen Polo GTI and Ford Fiesta ST, also came from Europe and shipped to Australia.

Also read: Nissan Pixo and Micra electric hatchbacks ruled out for Australia

What replaces the Ioniq 3?

Hyundai has yet to reveal which electric model will fill the gap left by the Ioniq 3, but one possibility is the Ioniq V, an electric sedan that sits much larger than the cancelled hatch. 

The Ioniq V measures around 4.9 metres long and, like the Elexio mid-size SUV, comes from China. If Hyundai brought it here, the Ioniq V could compete with the Tesla Model 3 and BYD Seal at around $55,000 drive-away.

Separately, Hyundai has confirmed two new electric models for Europe. One will be a city hatchback positioned between the small Inster and Ioniq 3 in size, and the other will be a small SUV sitting between the Ioniq 3 and the larger Kona Electric.

Hyundai has not said whether either model will come to Australia.

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