Hyundai is working on a sub-€20,000 (£17,041) electric city car that it plans to launch in Europe as its new entry-level model.
However, a production-ready version of the Korean brand’s car is still a little while off, Hyundai Motor Europe marketing chief Andreas-Christoph Hofmann told Automotive News Europe.
The move towards affordable small cars, especially electric-powered ones, comes as manufacturers look at ways of releasing new models but staying within new, tighter emissions regulations.
Hofmann said city cars “are tough to sell profitably”, due to their low pricing and the technology needed to electrify smaller vehicles.
Despite a worry over profits, the brand is currently toasting the success of its second quarter results, as the marque increased European sales by 8.2%. EVs accounted for 16% of this.
It will hope that the electric Hyundai Ioniq 6 will push this further when it is released later this year. Expected to be priced from £45,000, it has a 379-mile range and 329bhp output.
“We are confident about the second half [of the year],” Hofmann said.