Hyundai's cut-price EV! New $35k city car could be Australia's cheapest EV - but there's a catch

Hyundai is developing a new EV that could prove one of the most affordable to date, with the brand targeting a $35,000 price point for it i10-sized city car.

It will be music to the ears of the EV faithful who have watched as electric vehicle prices have gone in only one direction, and that's up.

But while the new EV is unlikely to earn the Ioniq badge, it would significantly lower the cost of entry to the Korean brand's electrified family.

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The catch? The vehicle is currently in development, and so is unlikely to launch in the immediate future. It's also being designed with Europe in mind, where small city cars are a way of life.

So says Hyundai Motor Europe’s marketing chief, Andreas-Christoph Hofmann, who told Automotive News Europe that the brand has a price target in mind for its entry-level EV.

"Everybody in the industry knows the target of this kind of vehicle is 20,000 euros,” he said.

The new model will presumably join the 11 new EVs Hyundai plans on launching in Europe by 2030, and the first to not wear the Ioniq badge. Hyundai is understood to be reserving its Ioniq badge for its top-flight, tech-led EVs.

For now, though, the cheapest way into an EV in Australia remains through China, with the MG ZS BEV range kicking off from $46,990, or the BYD Atto 3, which starts at $44,381 in some regions.

In the Hyundai family, Ioniq 5 is now $69,900 before on-road costs for the Dynamiq variant, or $77,500 for the Techniq. Alternatively, the Kona EV starts $54,500.

But that price looks set to come down soon. The only question remaining is when? Both Hyundai and Kia (with there Picanto) have been reported to be set to launch electrified versions of their city cars around 2025.

Until then, watch this space.