Hyundai is preparing to reverse its UK sales decline through a wave of new models led by the Ioniq 3, while also examining a return to the light commercial vehicle market that could create opportunities for its dealership network.
The UK new car market has grown by 9.5% this year, while Hyundai registrations have fallen by 8.6%. However, the manufacturer insists the divergence reflects planned product changes rather than a loss of competitiveness.
Hyundai Motor UK tells AM that its volume performance was aligned with its product lifecycle strategy and that it is continuing to grow its electrified vehicle business with the arrival of several important new models to restore momentum.
“Our volume performance this year is aligned with our product lifecycle planning,” it said. “We have achieved significant growth in electrified vehicles, while reducing combustion engine vehicles, such as i10, which ceased at the start of this year.”
Ioniq 3 begins UK product offensive
The first model in Hyundai’s next UK product phase will be the new Ioniq 3, which is due to reach showrooms in September.
Hyundai describes the model as its entry into the affordable family EV segment. The European version will offer up to 309 miles of range and will be the first Hyundai sold in the region with Pleos Connect, the group’s next-generation connected-car infotainment platform.
The Ioniq 3 will be followed by a new Tucson, Bayon and i20 as Hyundai refreshes some of its most important volume models.
The UK launches form part of a global plan encompassing more than 100 new or substantially refreshed vehicles by 2030, including 41 launches in Europe.
Hyundai intends to offer an electrified product in segments accounting for 85% of the European market. It is targeting more than 420,000 European EV sales by 2030, compared with 116,000 in 2025.
Globally, the manufacturer is maintaining its target of 5.55 million annual vehicle sales by 2030, with electrified models expected to account for 60% of the total, up from 23% in 2025.
Hyundai assesses UK van return
Light commercial vehicles have been identified as one of the largest remaining “white spaces” in Hyundai’s global portfolio.
The manufacturer confirmed that it regards the sector as an attractive growth opportunity, although it stopped short of committing a new van range for the UK.
Hyundai’s European product plan includes five new SUVs and light commercial vehicles, suggesting vans could play an important role in its regional expansion.
If Hyundai does return to the UK van market, its existing car retailers are likely to receive the first opportunity to represent the range. “Our priority would be to create additional opportunities for growth and profitability for our existing retail partners,” Hyundai Motor UK said.
“While the sale and servicing of light commercial vehicles requires certain specialist capabilities, our approach would be centred on scaling these requirements appropriately and supporting retailers where necessary.”
The comments indicate that Hyundai would seek to adapt its existing network rather than automatically establish an entirely separate commercial vehicle franchise. Dealerships may nevertheless need additional workshop equipment, technical training, parts capacity and dedicated commercial vehicle sales expertise.
Hyundai said further details of its light commercial vehicle plans would be released in due course.
No decision on EREV models for Europe
The company is also preparing to launch its first extended-range electric vehicles from the first half of 2027, but has yet to approve the technology for either the UK or wider European market.
Extended-range electric vehicles use an internal combustion engine as an onboard generator, rather than to drive the wheels directly. Hyundai believes the technology can provide an EV-like driving experience while reducing dependence on public charging.
Its first model, a Santa Fe EREV offering more than 600 miles of combined range, is being developed for North America and will be produced in Alabama.
“The EREV models announced during our Investor Day are currently planned for production in the US and targeted at the North American market,” Hyundai Motor UK confirmed.
“Hyundai continues to evaluate all propulsion technologies as part of its long term electrification strategy, and any future introduction of EREV products into additional markets, including Europe, remains under consideration.”
The manufacturer said its new high-performance battery cells could more than double the output of its previous high-nickel cells while reducing charging times by 40%. Its EREV system will use less than half the battery capacity of a comparable pure EV.
Used cars, aftersales strengthen dealer returns
Hyundai’s UK retailer development and site upgrade programme has been under way since 2024, with the manufacturer continuing to consolidate and prepare the network for a more heavily electrified product range.
Although no completion figure was disclosed, Hyundai said dealer performance was improving in several areas beyond new car sales.
Used Hyundai volumes increased by 23% during 2025 and have risen by a further 9% during 2026. Parts sales grew by 22% last year, while network aftersales profit is currently 20% higher than a year ago.
Hyundai Motor UK said the expansion of its used car operation was particularly important for protecting residual values and customer loyalty as the brand moves towards a fully electrified portfolio.
The manufacturer added: “We remain focused on ensuring our network is well positioned to support both current operations and future growth opportunities across the Hyundai business.”
Globally, Hyundai is targeting an operating profit margin above 9% by 2030, supported by additional hybrid models, lower material costs, increased localisation and a three-percentage-point reduction in its cost-of-sales ratio.
José Muñoz, president and CEO of Hyundai Motor Company, said: “Our fundamentals have never been stronger. Hyundai Motor Group is the third-largest automotive group and the second-most profitable, which gives us the ability to invest while others are pulling back.”
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