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Hyundai turns to China for small EVs after Ioniq 3 axe, as new Tucson leads 2027

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Hyundai Elexio electric SUV on a container port wharf at dusk

Hyundai Australia has signalled that its next small electric car and small electric SUV are likely to come from China, a month after it cancelled the Turkish-built Ioniq 3 small electric hatch. The comments came from chief operating officer Gavin Donaldson at the launch of the Staria Load Electric van this week.

"Our product portfolio probably lacks a small passenger car, probably lacks a small SUV from an EV point of view," Mr Donaldson told media, adding that Hyundai would "probably use China to fill those gaps." He also said the company has "definitely got additional products" it is looking at bringing in from China. No model, price or timing has been confirmed.

Why Hyundai is turning to China

The Ioniq 3 was due in early 2027. A Hyundai spokesperson said it was dropped because the cost of importing it from Turkey was too high to price it competitively. That is a problem in a segment where Chinese brands have pushed prices down sharply.

Small EVBuilt inPrice from, before on-road costs
BYD Atto 2China$31,990
Hyundai InsterSouth Korea$35,990
Hyundai Kona ElectricSouth Korea$46,990

Prices are list prices from our new-car catalogue, checked on 3 November 2026, and exclude on-road costs and any current deals. The gap between the Inster, which is a city car, and the Kona Electric is exactly where the Ioniq 3 would have sat, with 42.2kWh and 61kWh batteries and up to 496km of WLTP range.

Hyundai already sells a China-built EV here. The Hyundai Elexio electric SUV, made by Hyundai's Chinese joint venture, is listed from $59,990 before on-road costs. So the plan is not a new direction so much as an extension of one, and other legacy brands are moving the same way. Volkswagen is reportedly planning China-developed models for Australia too.

What could fill the gap

Hyundai has not named any models. Its Chinese joint venture builds several small and mid-size vehicles for the local market, but none has been confirmed for right-hand drive or Australian sale. Any China-sourced model would share the cost advantages Chinese brands enjoy here, but also any cost rise if China cuts export tax rebates, which we explained in our story on Chinese EVs costing about 4 per cent more from April 2027.

Until then, Hyundai's sub-$50,000 electric line-up is the Inster and Kona Electric. The Inster was cut by $1500 in October but lost its heat pump and V2L outlet in the process. Buyers wanting the cheapest options should see our cheapest electric cars guide.

Four key launches for 2027

Hyundai has said it has four key launches planned for 2027, three of them SUVs, all with hybrid options. The two it has named are the biggest.

ModelWhat we knowTiming
Fifth-generation TucsonAll-new medium SUV with hybrid powerFirst half of 2027
Next-generation i30 SedanReplacement for the current small sedanFirst half of 2027
Two further SUVsNot named. A small i20-based SUV has been discussed but not confirmed2027
UteUnder considerationLate 2028 at the earliest

The current Hyundai Tucson starts from $39,350 before on-road costs. We covered Hyundai's listing of the all-new Tucson for 2027 when it first appeared, and the current i30 Sedan recently added the i30 Sedan N Monochrome limited edition.

What it means for buyers

  • If you want a small Hyundai EV now, the choice is the Inster or the Kona Electric. Neither is about to be replaced.
  • A China-built small Hyundai EV is unlikely before 2028 if planning is only starting now, but Hyundai has not given timing.
  • If you are weighing up a Tucson, the current model will be replaced in the first half of 2027. Run-out deals are likely, but the new hybrid could bring better fuel economy.

Hyundai's comments were made to media at the Staria Load Electric launch in early November 2026. Model timing for the Tucson and i30 Sedan is from Hyundai Australia comments in September 2026. Nothing beyond the Tucson and i30 Sedan has been confirmed.

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Category:Automotive News in Australia

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Waqas Afzal

By Waqas Afzal

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Founder and Senior Automotive Editor at AussieMotor, covering automotive news, new car launches, vehicle pricing, buying guides, reviews, and market insights. I oversee editorial quality, fact-checking, SEO, and content strategy, with a focus on providing accurate, practical information that helps car buyers make better informed decisions.

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