Hyundai Motor Company has debuted the Concept THREE at the IAA Mobility 2025 event in Munich, Germany, representing the company’s first foray into the compact electric vehicle (EV) segment under its Ioniq sub-brand.
Analysts say the concept previews an upcoming production car – possibly the Ioniq 3, which is due to be launched next year.
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Hyundai says the introduction of Concept THREE adds to its portfolio of midsize and large EV models.
The launch aligns with the growing European demand for compact EVs, driven by urban living, environmental regulations, and the need for efficient use of space.
The Concept THREE’s design is influenced by Hyundai Motor’s advanced steel technology, and features an aerodynamic Aero Hatch profile and Parametric Pixel lighting at both ends.
The vehicle design includes modular ‘Bring Your Own Lifestyle (BYOL)’ widgets that the company says allows for a personalised travel experience.
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By GlobalDataEmphasising Hyundai’s focus on sustainability, the interior proposes the use of materials like textiles made from ocean waste and aluminium foam.
Hyundai Motor has also outlined key elements of its electrification strategy for Europe, which includes an expanded EV portfolio with an electrified version of every model in Europe by 2027 and the launch of 21 global EV models by 2030.
The company is also focusing on hydrogen innovations, with advancements in fuel cell technology as a clean energy solution for future mobility.
Moreover, Hyundai Motor is aiming to power its European production facilities with renewable energy and increase the use of recycled and sustainable materials in vehicle designs.
At the IAA show, Hyundai Motor is showcasing its entire European EV lineup, which also includes the INSTEROID concept and select Ioniq models.
Hyundai Motor Europe CEO and president Xavier Martinet said: “Returning to IAA Mobility after four years away is a true milestone, and such as occasion deserves a milestone car.
“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 Group, which includes Hyundai Motor and Kia Corporation, has reported a nearly 11% increase in sales in the US, reaching a record high of 179,455 units in August 2025.
Furthermore, Hyundai Motor Group has announced plans to significantly boost its investment in the US to $26bn from 2025 through 2028.
