Hyundai to expand small car line in Australia

HYUNDAI is building up an even more diverse small car line-up in Australia as the company seeks to balance tightening NVES emissions regulations, shifting consumer demand, responses to the current fuel crisis and an expansion of its battery electric vehicle portfolio.

The surging small car strategy will see Hyundai Motor Company Australia (HMCA) hedge its bets rather than overcommitting to one technology type, with multiple hybrid and BEV options set to make up the core while pure petrol will be retained for a while longer.

HMCA continues to enjoy a luxury of choice from Korean-built and European-sourced models, and the Australian-EU Free Trade Agreement (AEUFTA) is likely to reduce costs of sourcing ICE and hybrid cars from Europe in the near future.

While European-made BEVs were already exempt from five per cent import tariffs, the AEUFTA will extend that concession to models with combustion engines while reducing compliance costs, as Australia will begin to accept EU type approval for some models.

At present, HMCA sources only the i20 N and i30 N hatchback models from Hyundai Motor Europe (HME), with mild hybrid versions of the five-door i30 discontinued in December 2025 due to relatively high import costs.

From early 2027, however, HMCA will sell the Turkish-built Ioniq 3 small BEV in Australia, and a decision by HME to again renew the ‘PD’ i30 with facelift number three late this year could see familiar hatch back on the agenda for Australia.

Speaking with GoAuto, HME vice president of product Raf van Nuffel said the i30 hatch would remain part of the Hyundai portfolio for the foreseeable future.

“The i30 is not going to disappear immediately – it’s going to be around for a while … we like to have the i30 as a combustion engine. It is mainly successful in markets like Poland and Spain … we are targeting different areas of Europe with different powertrains,” he said.

It is expected that the i30 hatch will gain a full hybrid powertrain in its late-2026 facelift with sub-4.0L/100km consumption that could be attractive to HMCA as a way of helping it comply with tightening NVES CO2 limits.

While production of the the Czech-built i30 N hatchback continues, as do sales in Australia, HME is understood to have a crack plan to reintroduce the hot hatch to European markets by equipping it with a performance hybrid engine.

As a result, an i30 N hybrid hatch could foreseeably come to Australia in 2027.

In the meantime, the Korean-built i30 sedan – which already has a frugal hybrid option – will remain a core part of Hyundai’s small car offering. The i30 Sedan N also continues to be built with a (non-hybrid) turbo petrol engine.

Shifting tastes favouring SUV models see many i30 owners opt for the Kona, which is available with ICE, HEV and BEV powertrains locally.

Alongside the i30 and Kona, Hyundai will significantly expand its BEV offer with the forthcoming Ioniq 3, which occupies a similar footprint to an i30 hatch while offering packaging advantages of a dedicated electric platform.

With a projected driving range of 335-490km (WLTP) across two battery sizes, the Ioniq 3 is expected to be positioned locally as an accessible BEV hatch designed to compete with some Chinese rivals like the MG4.

GoAuto understands that a five-star ANCAP safety rating is being targeted for the Ioniq 3 in part to entice fleet buyers into the most affordable versions.

The Ioniq 3 is a considerably more conventional vehicle than the Kei car-esque Inster, which continues to act as the entry point to HMCA’s BEV line. 

Looking further ahead, Hyundai Motor Company has relinquished long-held pessimism towards lower-cost electric N cars as technology has developed and the reality of emissions laws have bitten.

A potential Ioniq 3 N electric hot hatch could see HMCA finally have the chance to offer a circa-$60,000 BEV alternative to i30 N owners who may find the $115,000 ask of the (well-regarded) Ioniq 5 N a bridge too far.