Hyundai Concept THREE Debuts as a Compact EV with Veloster Vibes

Hyundai has been kicking butt recently with its IONIQ EV sub-brand, rolling out everything from the family-friendly IONIQ 9 to the slick IONIQ 6 sedan. During the 2025 IAA Mobility show in Munich, the Korean automaker showed off something different: a compact EV concept designed for the urban crowd. Dubbed Concept THREE, it’s the first of its kind under the IONIQ badge, and it might just be the most fun-sized Hyundai since the Veloster.

That’s no coincidence. While Hyundai isn’t officially calling this a successor, the Concept THREE reminds me a lot of the Veloster—the offbeat hatchback with its asymmetrical doors and sporty personality. Where the Veloster was powered by gas engines, Concept THREE flips the script with a fully electric drivetrain, tighter packaging, and a design language that screams futuristic yet approachable.

The Concept THREE represents the first look at Hyundai’s “Art of Steel” design aesthetic. Think flowing surfaces, sharp intersecting lines, and proportions that balance muscular presence with efficiency. At 168.8 inches long and just 56.2 inches tall, the car is squat and athletic, with a 107.2-inch wheelbase that maximizes interior room while keeping its footprint city- and garage-friendly.

The aerodynamic hatchback profile is one of the car’s standout elements, with a sloped roofline that transitions into a vertical tailgate. Add in Parametric Pixel lighting front and rear, those signature squares now arranged in a gradient pattern, and the car has a visual style that’s instantly recognizable as part of Hyundai’s EV family.

And then there’s the color treatment: an anodized-effect Tungsten Gray body punctuated with lemon-tinted glass and matching wheels. It’s bold without being over the top, and it visually links the exterior to the Moonbeam Yellow accents inside the cabin.

Inside, the Concept THREE is more futuristic than the Veloster ever was. Hyundai describes the cabin as “furnished space,” designed to be comfortable and inviting. Like many concept cars, the interior is clean and minimal. There’s a squircle-shaped steering wheel with a pixel-light display, modular tech elements on the dashboard, and a mix of soft curves and dynamic angles. Hyundai says the interior is designed to use sustainable materials like ocean-waste textiles and lightweight aluminum foam.

The car also introduces something playful called “Mr. Pix,” a symbolic character embedded throughout the car in interactive design elements. It’s a bit of whimsy meant to spark joy and emotional connection. Add in modular “Bring Your Own Lifestyle” widgets, and you’ve got a car that can be tailored to its driver in unique ways.

Europe is the perfect place to launch Concept THREE. Urbanization, strict emissions policies, and a growing demand for compact EVs make it the ideal proving ground. Hyundai says nearly 80 percent of its vehicles sold in Europe are built locally, and this concept hints at what future B-segment electric hatchbacks could look like for that market.

The company’s broader plan is more ambitious: an electrified version of every model in Europe by 2027, 21 global EVs by 2030, and deeper pushes into hydrogen tech and renewable manufacturing. Concept THREE isn’t just a design study; it’s a preview of where Hyundai sees growth potential.

The Veloster was never a huge seller, but it carved out a niche by offering something fun and different in a sea of ordinary compacts. The Concept THREE feels like it channels that spirit, only with an electrified twist. Compact, urban-friendly EVs could be the next big battleground—at least outside of the U.S.—and Hyundai’s playful take might give it an edge.

Whether this concept makes it to production in its current form remains to be seen, but if Hyundai can bottle up the character of the Veloster and blend it with the clean, sustainable promise of the IONIQ brand, they could have a winner on their hands. Now what I really want is a Concept THREE N, with front and rear motors and 300+ horsepower. That could be incredibly fun.