Hyundai believes it has cracked the code of the affordable EV. The South Korean automaker recently announced that it would sell the new Inster subcompact electric SUV with a starting price of under $27,000.
The Inster looks something like a cross between the Kia Soul and Hyundai Kona. Aimed at young urban buyers, the EV offers a range of around 220 miles and will start in markets outside the United States.
Hyundai is pursuing cheaper EVs to compete with the rising tide of compelling, affordable models from China. Even so, the automaker has been trying to reach a lower price point for a while. European VP of marketing said, “Our target has always been to produce a car for our audience in Europe below 25,000 euros.”
If Hyundai’s able to pull this off, the Inster would undercut the average American EV price by almost $30,000. That said, there are no current plans to bring the vehicle here. Europeans are much more receptive to smaller vehicles, so it makes sense to start sales there before considering the U.S. market.
The automaker will cut costs for the vehicle by utilizing an existing gas platform from the Hyundai Casper. That said, it will be powered by a nickel cobalt manganese lithium-ion battery, which is more expensive than the battery chemistries seen in other affordable models. The automaker plans to compensate for the higher cost with a smaller battery pack.
Other automakers promise to offer similarly affordable EVs soon. Jeep plans to release an electric subcompact SUV that starts at or below $25,000 in 2027, and internationally, Renault will release the Dacia Spring minicar for a little over $17,000 after incentives.
[Images: Hyundai]
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