CEO: Kia ‘definitely' needs smaller, even more affordable EV under EV2
Kia Corp. CEO Ho Sung Song said the South Korean automaker 'definitely' needs an offering below the EV2 and may even tease a concept of the car, a possible EV1, next year.
Speaking at the Feb. 24 Kia EV Day here, Song said his company needs an affordable, mass-market entry to help drive global volume to the 1.6 million EVs Kia wants to sell annually in 2030.
Such an offering is especially important in Europe where stringent emissions standards demand higher EV sales and EV price competition is being stoked by low-cost product from China.
At the Kia EV event, Kia showcased the production version of an EV4 compact sedan and hatchback, a PV5 electric van and a concept version of the upcoming EV2 subcompact crossover.
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Kia expects the EV2 to start around €30,000 ($31,100) and deliver annual sales of 100,000, mostly from Europe, Song said. The EV4 will start around €37,000 ($38,400) with volume of 160,000, with 80,000 from Europe, 50,000 from North American and 25,000 in South Korea.
The PV5 will start around €35,000 ($36,300). By 2030, Kia wants annual sales of 250,000 from its line of Platform Beyond Vehicle people and cargo movers, including the PV5, PV7 and PV9.
But Song says Kia still needs something more affordable to capture buyers after the first wave of 'early majority' EV adopters, a group he calls 'late majority' customers.
'I think the EV2's major target is early majority customers,' Song said. 'But if we want to move to the late majority customer target, we definitely need a lower size and a lower price.'
Kia could tease that vehicle at the 2026 EV day, he added.
'We are internally studying what will be our entry EV product, apart from the EV2,' Song said. 'And maybe at the next EV Day, we will show you.'
Kia did not disclose details about this entry EV. But the EV2 will go on sale in 2026 and option two batteries. The standard grade is expected to get a lithium-iron phoshate battery that delivers a range of at least 300 kilometers (190 miles), while the upper-grade long-range model gets a nickel-cobalt-manganese battery capable of ranges around 450 kilometers (280 miles), Kia said.
The new, smaller EV would likely be the size of the Kia Picanto, sport smaller, less-costly batteries, and start under the €30,000 ($31,100) threshold.
Kia's worldwide EV sales rose 10 percent to 201,000 vehicles in 2024, as its overall sales inched ahead only 0.1 percent to 3.09 million globally. Kia wants to sell 250,000 EVs globally this year.
By 2030, the company wants to sell 1.6 million EVs worldwide, out of some 4.3 million vehilces of all powertrains. EVs should account for about 30 percent of Kia's total sales then, Song said.
He said Kia will get there by ramping up a full range of new EVs, including the EV2, EV3, EV4 and EV5. Kia also plans 11 commerical EVs in that timeframe, including the PV5, PV7 and PV9.
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