The race for affordable electric vehicles is heating up, and Hyundai is stepping in with a compact crossover aimed at budget-conscious buyers. Spotted testing across multiple countries, this new electric crossover appears to be Hyundai’s answer to the Kia EV2, its close corporate cousin.
Early prototypes surfaced in Chennai, India-often dubbed the ”Detroit of Asia” because of its dense network of auto factories. These test vehicles carried the code HE1, which insiders interpret as the internal name for the upcoming Hyundai Ioniq 1. If true, this will be the smallest and most affordable model in Hyundai’s Ioniq lineup.
Hyundai has previously used alphanumeric codes like NE for the Ioniq 5, where the ”E” typically signals an electric platform. The ”H” in HE1 remains a mystery but could hint at a new architecture or a market-specific variant designed for regions like India or Southeast Asia.
The car was later spotted at a charging station in Gwangju, South Korea. Despite heavy camouflage, the design language is clear: a tall, boxy silhouette typical of a compact SUV. This style maximizes interior space and gives the vehicle a more rugged, off-road-ready appearance-an increasingly popular look among affordable electric crossovers.
Another notable detail is the charging port positioned at the front passenger side, reminiscent of the Kia Syros. This reinforces the close collaboration between Hyundai and Kia, which helps both brands trim costs and accelerate development.
Hyundai Ioniq 1 pricing and market positioning
Price will be the deciding factor. The Kia EV2 enters the European market around €26,600. If Hyundai manages to price the Ioniq 1 near €26,000, it could become a top contender in the mass-market affordable electric crossover segment.
Hyundai Ioniq 1 technology and interior features
Despite its affordable ambitions, the Ioniq 1 won’t skimp on tech. Expect a modern interior featuring Hyundai’s Pleos Infotainment system, large digital screens, and advanced control interfaces. Hyundai is betting on making smart technology standard even for budget EV buyers.
Upcoming Hyundai Ioniq 3 compact hatchback
The official unveiling of the Ioniq 1 could happen by the end of this year. Meanwhile, those wanting a slightly bigger option should keep an eye on the Hyundai Ioniq 3-a compact hatchback slated to debut next month at Milan Design Week 2026.
Impact of affordable electric crossovers on global EV adoption
In a market dominated by pricier entries from Tesla, Volkswagen, and Hyundai’s own Ioniq 5, the push for cheaper electric crossovers like the Ioniq 1 and Kia EV2 signals an important shift. If Hyundai hits its target, it could open the floodgates for more mass adoption of EVs in emerging markets and budget segments worldwide.