Hyundai is readying an affordable rival for the Renault 4 as it looks to reinforce its position in Europe and get significantly closer to its Kia sibling for sales success.

The imminent arrival of the Bayon-sized EV, which is likely to be badged Ioniq 2, shows the breadth of Hyundai’s expanding line-up as it pushes into the booming new electric hatchback segment. The move is intended to bring new buyers to the brand.

In the first half of 2025, Hyundai sold 265,680 cars in Europe, just 7939 behind its Kia sibling.

The arrival of the Ioniq 2 is most notable because it will push the Korean brand into a completely new segment. Understood by Autocar to be twinned with sibling brand Kia’s incoming EV2, the Ioniq 2 will plug the gap between the compact Inster and the Kona Electric in Hyundai’s current six-strong electric vehicle line-up.

Pictures of the car testing confirm that it will be close in size to the combustion-engined Bayon, giving the brand a foothold in a segment that is growing in popularity with the launch of the Renault 4 this summer and the imminent arrivals of the Volkswagen ID 2X and Skoda Epiq. 

The model is set to be revealed at the Munich motor show next month and will go on sale in the third quarter of 2026. It is understood that Kia’s EV2 will arrive a few months before it.

Hyundai Europe boss Xavier Martinet told Autocar: “We are very much involved with the electrification of our line-up and to increase our electrified mix in the coming years.”

These spy shots confirm that the Ioniq 2 will be a raised hatchback with a raked roofline, similar in positioning to the incoming ID 2X. Under that heavy camouflage, the design at the front is expected to mirror that of the new Ioniq 6, with slimmed LEDs and an aggressively styled ‘technical’ look. 

Inside, the Ioniq 2 will have a more tech-focused cabin than that of the hybrid-powered Tucson. Offering what Hyundai refers to as a “step change” in usability for its models compared with the current Ioniq line-up, this includes a combined instrument and infotainment display set-up that spans roughly half the width of the dashboard.

Like the EV2, the Ioniq 2 will be built on the scalable E-GMP platform used by nearly all EVs in the Hyundai Motor Group, comprising Hyundai, Kia and Genesis.

It’s therefore likely to get a similar set-up to that of the slightly larger Kia EV3, which is offered with either a 58.3kWh or an 81.4kWh battery pack for ranges of 267 and 372 miles respectively. All versions of the EV3 are powered by a single electric motor that sends 201bhp and 209lb ft to the front wheels.

Pricing for the new crossover is likely to be close to that of the EV2, at around £25,000.