The race to build affordable electric cars is finally getting interesting. Most new electric vehicles are quite expensive, but Hyundai is working on something different. The company is testing a small SUV that should fit into more budgets. This new car was spotted testing on public roads in several countries, and it looks very similar to its cousin, the Kia EV2.
The first sightings of this mystery vehicle happened in Chennai, India. Some people call this city the "Detroit of Asia" because it has so many car factories. The prototype seen there had a special tag "HE1" - many experts think this is the internal name for the upcoming Hyundai Ioniq 1. If this is true, it will be the smallest and most affordable model in the Ioniq family.
Possible sighting of the Hyundai Ioniq 1 in India - source: TeamBHP/Instagram
In the past, Hyundai used codes like "NE" for the Ioniq 5 and "ME" for other models. The letter "E" usually means the car sits on a dedicated electric platform. But the "H" in the new code is a bit of a mystery - it might mean the car uses a new type of design or is built for specific markets. Even though the name is not official yet, the "1" suggests it is the entry-level model for the brand.
More recently, the car was spotted at a charging station in Gwangju, South Korea. The car was covered in heavy black fabric to hide its shape, a common tactic for cars that are not finished yet. But even with the covers, you can see the main design. The car has a boxy shape and stands very upright. This "toaster" look is popular because it creates more room for passengers. It also makes a small car look a bit tougher and more like a traditional SUV.
I found this camouflaged Hyundai's electric small suv here in S.Korea. Seems like this car is strategically designed for India. pic.twitter.com/Qx9X6BFf2e
— Jaehwan Cho 조재환 (@hohocho) March 27, 2026
One detail that's different is where you plug it in. The charging port is located on the front passenger side. This is exactly where the port is on the Kia Syros, another small EV coming soon. Sharing parts and designs allows Kia and Hyundai to build electric cars faster and keep the costs down.
Price is the most important part of this story for many drivers. We can look at the Kia EV2 to guess what the Hyundai will cost. Kia recently opened orders for the EV2 in Europe with a starting price of $31,200. This price point is very competitive with the majority of electric cars costing much more than that. If Hyundai can keep the price near $30,500, they will likely find many buyers who have been waiting for a cheaper EV.
The inside of the car will not be basic just because the price is lower. The modern dashboard will feature the new Pleos Infotainment system. This system uses large screens and new software to control music, maps, and car settings. Hyundai wants to make sure that younger drivers feel at home in the cabin, plus high-tech features are now expected in all new EVs, even the small ones.
We might see the official version of this car sooner than you think. Many expect Hyundai to reveal the final design by the end of this year. If you need something a little bigger, you should look at the Ioniq 3. That model is a small hatchback that will debut next month. It will make its first appearance at the 2026 Milan Design Week. Between the Ioniq 1 and the Ioniq 3, Hyundai is making sure they have an electric car for every type of person.
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