HYUNDAI has unveiled the Concept Three, its first compact electric vehicle concept under the IONIQ sub-brand, at IAA Mobility 2025 in Munich.

The debut represents Hyundai Motor's commitment to offering EVs in a rapidly evolving global market, where the focus shifts from technological advancement to experiences of ‘emotional fulfillment'.

At IAA Mobility 2025, Hyundai Motor is also showcasing its full EV lineup and outline its European electrification strategy, reinforcing its role as a leader in Europe's transition to clean energy.

The Concept Three looks similar to the Hyundai Inster in profile and measures some 4.29 metres long, 1.94 metres wide and has a 2.72 metre wheelbase.

It features what Hyundai describes as Art of Steel design which it says ‘transforms the strength and flexibility of steel into a language of sculptural beauty'.

Inspired by Hyundai advanced steel technologies, the material's natural formability reveals flowing volumes and precise lines that ‘evoke the distinctive aesthetic quality of steel'.

The concept car is at the heart of Hyundai Motor's participation at IAA Mobility 2025 and it says is an innovative compact EV concept that represents the next step in the company's electrification journey.

As the first compact EV concept under the IONIQ sub-brand, Concept Three signals Hyundai Motor's future expansion into a new vehicle category, complementing its existing midsize and large EV models.

With Europe experiencing a surging demand for compact EVs - driven by urbanisation, sustainability regulations and the growing need for space-efficient solutions - the Concept Three demonstrates Hyundai Motor's vision for meeting this demand by drawing on its advanced electrification capabilities.

Hyundai Motor anticipates the introduction of Concept Three to set the tone for its next chapter of design innovation and strengthen its competitive position in the electrification journey.

"Returning to IAA Mobility after four years away is a true milestone, and such as occasion deserves a milestone car," said Xavier Martinet, president and CEO of Hyundai Motor Europe. "Concept Three represents the next step in Hyundai Motor's electrification journey. With its compact dimensions and Art of Steel design language, it embodies our vision of delivering mobility that is practical, accessible and emotionally resonant."

Hyundai Motor views Europe as a hub of innovation in the EV era, driven by its diverse cultures, advanced environmental policies and urban-focused mobility needs. The region's demand for compact, sustainable vehicles positions Europe at the centre of the company's global electrification goals.

Nearly 80 per cent of Hyundai Motor vehicles sold in Europe are locally manufactured, reflecting the brand's deep integration and ability to tailor solutions to the unique mobility needs of both urban areas and rural communities.

Key elements of Hyundai Motor's electrification roadmap for Europe include:

Compact EVs play a critical role in addressing Europe's urban challenges, as exemplified by the debut of the Concept Three at IAA Mobility 2025, underscoring Hyundai Motor's mission to make electrification accessible and attractive for European consumers.