Hyundai has scrapped plans to launch the IONIQ 3 in Australia. Importing the electric hatch would be too costly to compete with low-priced Chinese EVs.
Hyundai cancels the IONIQ 3 for Australia
The IONIQ 3 will not go on sale in Australia as Hyundai initially planned. Hyundai announced the electric hatch would arrive in Australia in early 2027, following its launch in Europe and the UK.
That will no longer happen. Hyundai quietly removed the IONIQ 3 landing page from its Australian website.
A company spokesperson confirmed to Drive that bringing the IONIQ 3 to Australia, which is built in Turkey, would be “too difficult” and costly.
“The cost of importation is high, and the car will be fighting in a very price-sensitive segment. The numbers just don’t work for us given the competition,” Hyundai’s spokesperson explained.
The IONIQ 3 was expected to go on sale in Australia priced from around AUD$40,000, before on-road costs. Unlike other Hyundai and Kia models, Hyundai produces the IONIQ 3 at its Izmit plant in Turkey, which would make it too expensive to compete with lower-priced Chinese EVs.
According to The Driven, the top 10 best-selling electric vehicles in Australia through September include the Tesla Model Y (35,930), BYD Sealion 7 (19,964), Geely EX5 (12,745), Zeekr 7X (10,800), Omoda Jaecoo J5 (10,664), BYD Atto 2 (8,673), Tesla Model 3 (5,775), Kia EV5 (4,722), Kia EV3 (4,541), and BYD Atto 1 (4,471).
The IONIQ 3 would have competed against others in the segment, such as BYD’s Dolphin, which starts at as low as AUD$28,888.
In the UK, the IONIQ 3 is now on sale, starting at just £18,495 ($25,000) OTR, including the £3,750 Electric Car Grant. In Europe, it costs around €28,950 ($33,000).
Hyundai’s electric hatch is available with 42 kWh and 61 kWh battery packs. The base IONIQ 3 Advance trim with the 42 kWh battery offers up to 213 miles of WLTP range. The IONIQ 3 Advance with the 61 kWh battery starts at £21,995 ($29,000) and offers a “class-leading” WLTP range of up to 308 miles.
The IONIQ 3 is also Hyundai’s first vehicle in Europe equipped with its new Pleos Connect infotainment system.
Measuring 4,155 mm (163.5″) long, 1,800 mm (70.9″) wide, and 1,505 mm (59.3″) high, with a 2,680 mm (105.5″) wheelbase, the IONIQ 3 is slightly smaller than the Kia EV3.
Electrek’s Take
Because the IONIQ 3 is built in Europe, Hyundai can undercut much of the competition, including BYD’s new “Super Hybrid” Dolphin G DM-i (£23,990). That would not be the case in Australia.
While Hyundai has no plans to bring the IONIQ 3 to the US, Hyundai Motor CEO Jose Munoz warned last month that without barriers, the US could be next in line for a wave of low-cost Chinese vehicles.
“All the top sellers are Chinese because there are no barriers,” Munoz told Reuters, referring to the UK.
The UK “was a very profitable, very strong market,” Munoz said, but now it “has become like China” with brands like BYD quickly gaining market share.
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