A Compact EV for a Changing Market

As automakers prepare for IAA Munich next week, one of the biggest questions remains: how to keep EVs affordable in a market where incentives like U.S. federal tax credits are disappearing. Hyundai is stepping forward with a bold answer in the form of the Ioniq 3, a compact electric crossover concept that combines radical design with next-generation digital technology.

Ioniq 9 on the road

Concept Three: A Glimpse at Hyundai’s Future

On Tuesday, Hyundai teased the Concept Three, described as Ioniq’s first compact EV concept. The vehicle is widely seen as a preview of the upcoming Ioniq 3, a sibling to the Kia EV3, which is already on sale in Europe and South Korea. While the Kia EV3 leans toward practicality, the Ioniq 3 promises a more radical, hot-hatch-inspired design.

The sketch reveals a sharp front splitter, bulging rear wheel arches, and what Hyundai calls an “aero hatch” with an integrated ducktail spoiler. This design blends aggressive styling with aerodynamic efficiency, setting it apart from more conventional compact EVs.


Next-Generation Software Architecture

More than its styling, the Ioniq 3 represents Hyundai’s leap into software-defined vehicles. According to Top Gear, the model will debut the automaker’s next-generation Pleos operating system and advanced connected-car features.

Hyundai is shifting from multiple domain controllers to a zonal architecture with fewer, more powerful computers. This change aims to simplify the car’s electrical systems, increase data transfer speeds, and make over-the-air updates easier. In theory, it will also streamline repair diagnostics, bringing Hyundai closer to rivals like Tesla and Rivian in digital capability.


Apple CarPlay Ultra Could Be the Game-Changer

One of the biggest draws may be the rumored inclusion of Apple CarPlay Ultra. Unlike the standard CarPlay interface, CarPlay Ultra expands beyond the infotainment system to integrate with the digital gauge cluster. That means essential vehicle data such as speed, range, battery status, and tire pressure could be displayed through an iOS-powered interface.

CarPlay Ultra also supports extensive customization, similar to an iPhone or Apple Watch, letting drivers adjust wallpapers, color schemes, and themes across every screen. The feature debuted earlier this year in 2025 Aston Martin models in the U.S. and Canada. If confirmed, the Ioniq 3 would be the first affordable EV to offer this premium technology, potentially giving Hyundai a major edge over competitors.

Apple CarPlay Ultra


Powertrain: Lessons from the Kia EV3

Hyundai has not yet disclosed the Ioniq 3’s battery or motor details, but the Kia EV3 provides a good reference point. Kia’s model offers two battery packs: 58.3 kWh for about 270 miles of range and 81.4 kWh for up to 375 miles (WLTP). For the U.S., Kia is targeting around 300 miles of range, suggesting the Ioniq 3 will aim for a similar sweet spot.

With a focus on efficiency, affordability, and range, the Ioniq 3 could be positioned as Hyundai’s entry-level EV, complementing the larger and more premium Ioniq 5 and Ioniq 6.


Strategic Importance for Hyundai in the U.S.

The Hyundai Ioniq 5 has become one of the most popular EV crossovers in the U.S., helped significantly by federal tax credits and aggressive dealer incentives. But as those subsidies phase out, Hyundai needs fresh strategies to maintain momentum.

The Ioniq 3 could play a crucial role by offering a lower-priced alternative without sacrificing technology. In what some analysts are calling “Trump’s America,” where EV subsidies are shrinking and competition is fierce, affordable models with advanced features may be key to keeping sales strong.


Conclusion: A Compact EV With Big Potential

The Hyundai Ioniq 3 is shaping up to be more than just a stylish compact EV. With its radical design, next-gen software, and potential Apple CarPlay Ultra integration, it could redefine what buyers expect from an affordable electric vehicle.

If Hyundai delivers on range and pricing, the Ioniq 3 may become one of the most significant EV launches of 2025, appealing to both tech-savvy younger buyers and cost-conscious families looking for a practical yet forward-thinking vehicle.

Recommend Reading: Hyundai and Kia Surge Ahead in the US with EVs Driving Record Sales

GMC Hummer EV on the grassland.

GM Sets EV Sales Record While Warning of Sharp Decline Ahead

General Motors broke EV sales records in summer 2025, fueled by new models and tax credit FOMO. But with incentives ending, GM warns demand will cool.

Plus

The concept photo of Ioniq 3.

Hyundai Ioniq 3 Concept Teased: Affordable EV Could Debut With Apple CarPlay Ultra

Hyundai has teased the Ioniq 3, its first compact EV concept, featuring radical design, next-gen software, and possible Apple CarPlay Ultra support. Positioned as an affordable alternative to larger Ioniq models, the Ioniq 3 could deliver around 300 miles of range and make premium tech more accessible to everyday buyers.

Plus

Volkswagen ID. Buzz

Volkswagen Raises ID.Buzz Lease Bonus and Monthly Cost Drops

Volkswagen raises the 2025 ID.Buzz lease bonus to $10,500, cutting monthly costs to $589. The deal ends September 30 with limited availability.

Plus