Hyundai may be about to enter the ultra-competitive sub-$40,000 electric hatchback segment dominated by models like the MG 4 Urban and BYD Dolphin. Recently released UK pricing points to the model undercutting Hyundai’s Inster EV, which starts from $39,000 in Australia.

Pricing for the cheapest Ioniq 3 in the UK starts from £22,245, which amounts to A$42,460 as a direct conversion, although cars in the UK are traditionally priced slightly higher than their counterparts down under.

Silver electric SUV driving on a city highway with modern glass buildings in the background under a blue sky.
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Hyundai UK’s starting point for the Ioniq 3 EV range is already lower than that of the smaller Inster, which kicks off from £22,995 (A$43,890). In Australia, the Inster starts from $39,000, opening the door to a starting price below $40,000 for the Ioniq 3. If that’s the case, the Ioniq 3 could become Hyundai Australia’s cheapest electric model, undercutting both the Inster and the $46,000 Kona Electric small SUV.

Complicating the pricing formula slightly is the Inster’s South Korean sourcing, whereas the Ioniq 3 will come from Türkiye when it launches in Australia in 2027. That will add to shipping costs as well as attracting a five per cent import duty that’s not levied on cars from South Korea.

If Hyundai is unable to find a workaround, the Ioniq 3 could have a starting price of just over $40,000. That would put it roughly on par with the last i30 hatch in top-spec N Line Premium guise, which started from $41,250 after sourcing switched to the Czech Republic.

The powertrain for the entry-level Ioniq 3 comes close to that of the Inster, with a 107kW motor and 42.2kWh battery enabling a WLTP range of 344km. Australia’s cheapest Inster comes with a 71kW motor, but a similar 42kWh battery and 327km of WLTP range.

Front interior of a modern car with a round steering wheel and a wide touchscreen map display on the dash.
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Our best-selling small EV hatch, the BYD Dolphin, starts from just $29,990 plus on-road costs for the Essential variant with a 70kW motor, 44.9kWh battery and a 340km WLTP range. The MG 4 Urban Essence starts from $31,990 drive-away and comes with a 110kW motor, 43kWh battery and a slightly shorter 316km WLTP range.

Aussie buying habits indicate that while low starting prices get customers into showrooms, longer-range models traditionally make up the bulk of electric vehicle sales.

A longer-range Ioniq 3 with a 61kWh battery starts from £25,745 (A$49,150), while the better-equipped, range-topping N Line Evo tops out at £31,945 (A$61,000). That’s more than many electric medium SUVs from Chinese rivals and overlaps with the Hyundai Elexio EV from $58,990 plus on-road costs.

The specifications and line-up for the Australian-delivered Ioniq 3 have not yet been revealed, but are expected to be announced closer to the new model’s early 2027 arrival date.