Hyundai’s IONIQ Concept Three Signals Expansion Into Compact EV Market

Hyundai unveiled the IONIQ Concept Three EV at IAA Mobility 2025 in Munich, marking the brand’s first compact EV concept.

Hyundai’s IONIQ Concept Three electric vehicle introduces a new design language dubbed “Art of Steel” and reveals the automaker’s ideas for the future of urban mobility. With its aerodynamic “Aero Hatch” profile and customizable digital features, the concept signals Hyundai’s intent to broaden its IONIQ lineup beyond premium EVs.

IONIQ Concept Three’s compact mobility vision

The IONIQ Concept Three is positioned as Hyundai’s most city-friendly EV design to date, combining compact proportions with advanced personalization options. The automaker stated that the model emphasizes the emotional connection between the driver and the car, with interactive features tailored for urban lifestyles.

Hyundai executives added that the Concept Three underscores the brand’s long-term commitment to the European EV market, where smaller vehicles remain key to adoption. “Concept THREE stretches the bandwidth of electrification. It positions us for a production vehicle in a more compact, lower-cost segment, so that everyone can enjoy IONIQ,” noted Simon Loasby, Senior Vice President and Head of Hyundai Design Center.

Concept Three’s ‘Aero Hatch’ form and ‘Art of Steel’ design language

The Concept Three is defined by its “Aero Hatch” silhouette, integrating a sleek roofline, ducktail spoiler, and vertical tailgate to balance aerodynamics with practicality. Hyundai design chief Simon Loasby explained that the project evolved from a challenge to reimagine the European hatchback, utilizing Hyundai’s in-house steel expertise to craft a sculptural yet efficient form.

The IONIQ Concept Three’s “Art of Steel” design language highlights expressive surfaces, maximizing both aesthetics and material innovation. “‘Art of Steel’ began with a conversation I had with SangYup Lee (Executive Vice President and Head of Hyundai and Genesis Global Design). He pointed out that Hyundai is perhaps the only car manufacturer that produces its own steel, giving us a uniquely close relationship with our colleagues in manufacturing,” said Loasby.

“That sparked the question: how can we celebrate steel? And if we do, how can we design something that not only looks like steel but also expresses the best qualities of the material? In a way, ‘Art of Steel’ is about the artistry of curving, bending and moving steel to create volume,” he elaborated.

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