Hyundai and Kia, the core brands of Hyundai Motor Group (HMG), are accelerating their push into the budget electric car segment, with plans to introduce a range of affordable EVs starting in 2026.
According to an internal product planning document obtained by The Korea Economic Daily, the South Korean automakers will launch 35 new and updated vehicles in 2026, including smaller, more cost-effective electric models designed to appeal to mass-market consumers.
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Among the upcoming models is Hyundai’s small electric hatchback, codenamed ‘BJ1,’ which is scheduled to hit showrooms by August 2026. The vehicle, which will likely be tailored for the European market, will not be a direct successor to the electric i20, as initially speculated.
Instead, Hyundai plans to introduce the electric i20 as a separate model for South America, expected to begin shipping in the first half of 2026. This strategic differentiation suggests that the BJ1 may be a fully electric vehicle aimed at European customers, while the electric i20 could be a lower-cost, internal combustion engine (ICE)-converted version targeting emerging markets.
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Hyundai has also revealed plans to manufacture electric vehicles at its İzmit plant in Turkey, starting in 2026. The plant, currently responsible for producing the i10, i20, and Bayon, could see the introduction of the BJ1 as a potential competitor to models like the Volkswagen ID.2. The BJ1 will be offered with two battery options, LFP and NMC, providing a WLTP range of approximately 300 to 400 kilometers, depending on the configuration. Additionally, Hyundai is developing a dedicated EV, codenamed ‘HE1i,’ set for release in India in late 2026, built on the company’s E-GMP platform.
On the Kia front, the automaker is set to introduce two new budget-friendly electric models in 2026. The company will begin production of the Euro-focused EV2 in February 2026, with deliveries expected to begin in the spring. Kia is also preparing to unveil the electric variant of the Syros, a small SUV designed for the Indian market, in April 2026.
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Globally, Kia has ambitious plans for its electric lineup, targeting a total of 15 electric models by 2030. However, the company recently adjusted its 2030 sales target, reducing its annual EV sales goal from 1.6 million to 1.26 million units due to slowing demand. Meanwhile, Hyundai remains more aggressive, aiming to expand its EV portfolio to 21 models and boost its annual EV sales to 2 million units by the end of the decade. The two brands are expected to compete fiercely in both the budget EV sector and the broader global EV market as they navigate the changing landscape of automotive electrification.