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Home > Industry

Hyundai and Kia Accelerate European Push with Compact Cars to Outrun Chinese Rivalry

KO YONG-CHUL Reporter / Updated : 2026-10-19 09:08:22
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Amid intensifying competition in the European market driven by the aggressive expansion of Chinese automakers, Hyundai Motor and Kia are accelerating their efforts to capture European consumers' hearts by strengthening their compact electric vehicle (EV) lineups.

According to Hyundai Motor and Kia on the 19th, their compact EV sales in the European market from January to August this year reached 97,689 units, marking an approximately 14.4% increase compared to 85,404 units during the same period last year.

Total compact car sales, including compact EVs, reached 289,261 units, nearing the 300,000-unit milestone.

This strong performance stems from Hyundai and Kia reinforcing their compact EV lineups with models like the Casper Electric, EV3, and EV2, alongside the continued local popularity of traditional mainstays such as the Morning (known as the Picanto in some markets) and the i20.

Launched in Europe in December 2024, the Casper Electric has sold 48,824 units through August this year. Meanwhile, the EV3, launched in August of the same year, has driven EV performance with a cumulative sales volume of 109,278 units to date.

The EV2, unveiled to the world at the Brussels Motor Show last January, is Kia's sixth dedicated EV optimized for urban driving. It has sold 17,547 units through August, gaining steady popularity locally.

The Morning, launched in 2004, surpassed 1 million cumulative sales in 2020 and recorded a total of 1,362,740 units through August, making it the best-selling Hyundai-Kia model in Europe. The i20, launched in 2008, also hit the 1-million cumulative sales milestone in 2021. The Kona and Stonic have recorded 789,918 and 506,390 units sold to date, respectively.

However, competition in the European market has recently grown fiercer due to the rapid rise of Chinese brands.

According to the European Automobile Manufacturers' Association (ACEA), China's Geely Auto sold 205,047 units in Europe from January to August, a 7.8% increase year-over-year. BYD saw a staggering 163% surge to 177,752 units, while Chery Automobile recorded 116,318 units, up 250.9%.

During the same period, Hyundai and Kia sold 534,670 units, maintaining fourth place behind Volkswagen, Stellantis, and Renault, though this represents a 2.2% decrease compared to the same period last year.

In response, Hyundai and Kia plan to strengthen their local market presence by offering a diverse range of compact cars tailored to European consumers who prioritize economic efficiency and practicality.

Currently, the Ioniq 3 compact electric hatchback and the All-New Bayon compact SUV are standing by as new Europe-strategy models.

The Ioniq 3 is a European-exclusive compact hatchback model that made its global debut at the 2026 Milan Design Week last April. It features an "aero-hatch" design that satisfies both aerodynamic efficiency and generous interior space, along with performance optimized for European driving environments based on the E-GMP platform. Equipped with a 61 kWh battery on the long-range model, it offers a maximum driving range of up to 496 km on a single charge.

The All-New Bayon, unveiled globally at the recently concluded 2026 Paris Motor Show, is the second-generation model of the original Bayon launched in 2021. The first-generation Bayon targeted the European B-segment (compact) market by selling over 20,000 units annually in Europe from 2022 through last year.

The new Bayon enhances safety by incorporating advanced convenience features such as Highway Driving Assist, a 360-degree camera, and Forward Collision-Avoidance Assist. Hyundai and Kia plan to attract new customers by combining these with cutting-edge technologies like Digital Key 2.0 and dual 12.3-inch curved displays.

A Hyundai Motor and Kia representative stated, "We will solidify our position in the European market by strengthening our portfolio across all vehicle classes, from compacts to premium models."

[Copyright (c) Global Economic Times. All Rights Reserved.]

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