Hyundai "rethinks the compact EV from the ground up" with Concept Three
South Korean carmaker Hyundai has unveiled a compact EV concept designed specifically for driving in European cities, whose swooping form was determined by the properties of steel.
Released under the manufacturer's electric sub-brand Ioniq, the Concept Three makes its global debut at the IAA Mobility 2025 motor show in Munich today.
At just under 4.3 metres long, it is the first compact electric vehicle (EV) in the Ioniq family, which also includes the mid-sized Ioniq 5, the Ioniq 6 saloon and the recently launched Ioniq 9, a large SUV.
Hyundai said the concept will "set the tone for its next chapter of design innovation" and signals its "future expansion into a new vehicle category".
"With Europe experiencing a surging demand for compact EVs – driven by urbanisation, sustainability regulations and the growing need for space-efficient solutions – the Concept Three demonstrates Hyundai Motor's vision for meeting this demand by drawing on its advanced electrification capabilities," the company said.
The concept's emergence could signal a new direction for EV design, which has become heavily centred around larger cars as manufacturers seek to protect profit margins.
At a media preview event last week, Hyundai Design Center head Simon Loasby told journalists that Concept Three is "80 per cent" of the way to being production-ready.
The car owes its shape to what Hyundai calls "the Art of Steel" – a design technique that seeks to work with the inherent bending tendencies of steel, first exhibited in the Initium concept unveiled in late 2024 and partly designed to show off the company's advanced steelworking technology.
To emphasise the effect, sheets are fitted together cleanly and finished with an anodised effect in a tungsten grey colour.
Contrasting with the grey paintwork are lemon-yellow wheel hubs and glazing, used for a ducktail spoiler as well as the windows.
Combined with a dynamic roofline and vertical tailgate, the spoiler contributes to the car's sporty hatchback configuration, described by Hyundai as "Aero Hatch", intended to balance an aerodynamic profile with generous interior space.
According to Loasby, the car's basic shape was first developed in the form of paper sculptures.
"Designing the Concept Three was an opportunity for us to rethink the compact EV from the ground up," said Loasby.
"We defined the 'Aero Hatch' typology to craft a silhouette that captures a sense of flow and becomes a beautifully proportioned sculpture."
Like all of Hyundai's recently released cars, the Concept Three features pixelated lights but pushes the idea further, with ultra-thin headlights and a pixelated light display on the front grille.
Two miniature pixelated screens also feature near the side-view cameras, facing out through the door windows.
Inside the car, the grey-and-yellow colour scheme continues, with grey vegetable-tanned leather and ocean-waste textiles juxtaposed with a recycled-aluminium powder paint in a shade Hyundai said was inspired by the buttery Moonbeam coreopsis flower.
The doors and dash are filled with a lightweight aluminium foam left visible at the end, while soft lilac-coloured lighting in the doors, dash and central console cuts through the grey and yellow.
To keep the driver's eyes on the road as much as possible, the Concept Three eschews a touchscreen dash in favour of a series of widgets arranged around the steering wheel, which would be modular and customisable.
Dotted around the car is Mr Pix, a cartoonish character conceived by the Hyundai designers in an attempt to inject a sense of playfulness and personality.
On a similar theme, messaging around the car includes the words "Troublemaker" and "Thrillseeker" emblazoned on the driver's and front passenger's seats, respectively.
Historically known for producing small, affordable cars, Hyundai is using the shift to electrification to reposition its brand by embracing a more adventurous design approach.
It has erected a 58-metre-wide, seven-metre-tall booth in Munich city centre for IAA Mobility that will display seven of its EVs – including Concept Three – within large glass cubes that reference the cars' characteristic pixelated headlights.
More than 500,000 visitors are expected to attend the show this week.
The company plans to release 21 EV models by 2030, including electrified versions of all of its cars in Europe by 2027, while transitioning its factories on the continent to renewable energy.
The photography is courtesy of Hyundai.
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