Hyundai is preparing to shake up the European EV segment once again with the upcoming launch of a new electric hatchback, codenamed BJ1. Slated for release in August 2026, this compact EV—expected to be similar in size to the popular Hyundai i20—signals the automaker’s commitment to electrifying even the most cost-sensitive segments, despite growing concerns over the so-called EV chasm.
Hyundai BJ1: A Small EV with Big Ambitions
While the official name for the Hyundai BJ1 remains unconfirmed, early reports suggest the model will ride on a dedicated EV platform and aim to deliver urban-friendly dimensions without compromising on technology or performance. Targeting the European B-segment hatchback market, the BJ1 is positioned to compete with the likes of the Renault 5 E-Tech, Volkswagen ID.2all, and the upcoming Fiat Panda EV.
With European cities tightening emissions regulations and internal combustion engines slowly being phased out, Hyundai’s decision to develop a compact EV specifically for this market appears strategic, albeit risky.
Launching Amid the EV Chasm
Hyundai’s decision to move forward with a new compact EV comes at a time when many automakers are re-evaluating their EV strategies. The EV chasm—the gap between early adopters and mass-market consumers—has left several manufacturers cautious. Slower-than-expected sales growth, insufficient charging infrastructure, and high battery costs have all contributed to uncertainty.
Yet Hyundai seems undeterred. The Korean brand has consistently demonstrated its EV prowess with models like the IONIQ 5, IONIQ 6, and Kona Electric. By introducing an i20-sized EV, the brand is betting that affordability and practicality will win over a new wave of eco-conscious European buyers.
A rendering of an electric i20 N made by Sustvin
A Glimpse at a High-Performance Future: N Electric Hot Hatch?
Perhaps even more intriguing is the possibility of a high-performance N variant of this small EV. With Hyundai’s N division already earning praise for models like the i20 N and IONIQ 5 N, an affordable electric hot hatch could inject much-needed excitement into the segment.
While nothing has been confirmed, insiders suggest that Hyundai is exploring ways to deliver a performance-oriented BJ1 N without inflating costs. A lightweight design, sport-tuned suspension, and dual-motor configuration could make it one of the most compelling electric hot hatches on the market—perhaps even the first truly budget-friendly electric performance car.
Why BJ1 Matters for the European EV Market
The BJ1 isn’t just another EV. It’s a litmus test for how far Hyundai—and the broader industry—is willing to go in democratizing electric mobility. If priced competitively, this model could be a game-changer for younger buyers and urban drivers who find current EV options either too large or too expensive.