Hyundai’s new $25,000 Inster EV will help double electric car sales in Europe this year

Despite its small size, Hyundai expects big things from its new low-cost electric SUV. Starting at around $25,000, the Inster EV will be Hyundai’s main growth driver, as it plans to double electric car sales in Europe this year. Hyundai will also launch its first three-row electric SUV, the IONIQ 9.

After selling over 68,000 EVs in Europe last year, Hyundai’s CFO, Seung Jo Lee, said the automaker is “looking to double that” in 2025.

On the company’s fourth-quarter earnings call, Lee stressed Hyundai “will do our best to meet the emissions targets.” With new models arriving, Hyundai expects things to pick up this year.

The EU will fine automakers if they miss their 2025 targets for reducing CO2 emissions. Europe’s largest automaker, Volkswagen, also faces hefty fines of around $1.5 billion (1.5 billion euros).

According to global data collection agency Dataforce (via Automotive News), Hyundai’s EV sales slipped 15% last year to 68,279 units. The biggest reason behind the fallout was 41% fewer electric car sales in Germany, where many brands saw EV sales slide after the government ended federal incentives.

Electric cars only accounted for 11% of Hyundai’s total sales in Europe last year, down from 15% in 2023. Doubling it would put it at over 20%, about where it would need to be to meet the EU’s CO2 targets.

Can Hyundai’s $25,000 Inster double EV sales in Europe?

Hyundai expects the new Inster EV, which starts at around $25,000 (€23,900) in Germany, to carry the bulk of the growth this year. Hyundai offers the low-cost electric SUV for just $207 (€199) per month with no down payment.

The entry-level model’s 42 kWh battery can provide a WLTP driving range of up to 203 miles (327 km). The long-range version, powered by a 49 kWh battery, can reach 230 miles (370 km).

Hyundai will launch the larger IONIQ 9 in Europe later this year. The IONIQ 9, unveiled at the LA Auto Show last November, is a slightly bigger and more upscale version of Kia’s EV9. At 5,060 mm (199.2″) long, 1,980 mm (78″) wide, and 1,790 mm (70.5″) tall, Hyundai’s SUV is slightly bigger than the EV9.

Although prices and specs will be revealed closer to launch, Hyundai said the IONIQ 9 will have a WLTP range of 385 miles (620 km).

The Inster EV and IONIQ 9 will join the IONIQ 5, IONIQ 6, and Kona Electric as Hyundai expands its European lineup. Last year, Hyundai’s top-selling EV in Europe was the Kona Electric (36,526 units), accounting for over half of EV sales. The IONIQ 5 was second (22,830), followed by the IONIQ 6 (8,731).

Later this year, Hyundai is also expected to reveal the smaller IONIQ 3, which is expected to be closely related to Kia’s compact EV3 SUV.

After launching the EV3 in its home market last summer, Kia’s compact electric SUV was the top-selling EV in South Korea through the second half of 2024. In Europe, the EV3 starts at around $38,000 (€36,000).

Hyundai’s luxury Genesis brand confirmed that it will stop building gas-powered vehicles to become a “fully electrified brand” this year. However, that will include hybrids in the coming years. Genesis sold 1,383 EVs in Europe last year.