Kia shares goal to boost annual EV sales to 1 million units by 2026

President of Kia Song Ho-sung [Courtesy of Kia]

South Korean automaker Kia Corp. is going aggressive to make electric vehicles (EV) more popular and affordable, by establishing a full line-up in EV models by 2025 and lowering prices.

During the 2023 Kia EV Day that was held in Yeoju, Gyeonggi Province, on Thursday, the carmaker’s President Song Ho-sung noted that the company will “address the price issue, which is believed to be a hurdle for the mass adoption of EVs.”

Song said that its upcoming small- and mid-size EV models, such as EV3, EV4, and EV5, will be priced in the range of between $35,000 and $50,000.

In local currency, $35,000 is about mid-40 million won range, which is less than the average EV price of 63 million won ($46,721) last year based on data from the Ministry of Land, Infrastructure, and Transport.

Kia’s new pricing is considered to be quite aggressive.

Kia’s strategy is to offer a full lineup of EVs with a broader price range, ranging from 40 million won to 90 million won, in order to gain popularity.

Leading the new strategy will be the upcoming EV3, EV4, and EV5, whose actual models were unveiled for the first time on Thursday.

EV5, Kia’s mid-size sport utility vehicle equipped with affordable lithium iron phosphate (LFP) batteries, has been released in the Chinese market at a price of around 20 million won and is scheduled to be launched in Korea in two years.

EV3 and EV4 are small and medium-sized SUVs and a mid-size sedan, respectively, and they are scheduled for domestic release next year. Kia plans to release these three models within a price range of between 46.8 million and 66.9 million won.

In addition, Kia plans to initially launch EV6 and EV9 in emerging markets such as India, where the transition to EVs is slower, to build a premium image, while adding EV5, EV4, and EV3 to provide a broader range of choices.

“Our plan to launch a total of 15 EV models by 2027 is still valid, and these models will vary in type from pickup trucks and compact cars to mid-sized cars,” Song said.

Kia also plans to expand its charging infrastructure to ensure that the inconvenience of charging does not become a hindrance to purchasing EVs.

Kia’s North American subsidiary recently announced plans to adopt the North American Charging Standard (NACS) for EVs sold in the U.S. starting in the fourth quarter of 2024.

Previously, Kia also announced a plan to install 30,000 fast chargers in North America by 2030 in collaboration with five auto groups.

As a member of IONITY, a joint venture established by global automakers, including BMW Group, Ford Motor Co., Mercedes-Benz AG, and Volkswagen Group, Kia has already installed 2,800 fast chargers on major highways in Europe. By 2025, IONITY plans to install an additional 7,000 chargers.

Kia plans to increase the number of its global EV production hubs to eight by 2025. Korea will be the automaker’s global hub for EV research, development, production, and supply. Europe will be the production hub for small and medium-sized EVs, while China will serve as a manufacturing hub for large EVs.