Want an electric car? Why 2024 will be the year of cheap EVs

Next year, the Korean market will offer more affordable electric vehicles (EVs) under 40 million won ($30,863) from big names like Hyundai, Kia, and Volvo.

Kia's low-cost EV lineup. From left, EV3, EV5, EV4. EV3 and EV4 will be introduced in Korea in 2024. [KIA]

Missed the boat on buying an electric car?

Don’t worry, next year the market will offer more affordable EVs that won’t break the bank.

Around 10 new EVs costing under 40 million won ($30,863) will hit the Korean market including from big names like Hyundai Motor, Kia and Volvo.

Kia will release an EV3 small-size SUV in the first half at an expected price under 40 million won. With the government EV subsidy, the car could be purchased in the lower 30 million won range.

An EV4 sedan will also hit the market by the end of the year. It's not yet known what batteries the two cars will be using, though it is highly likely they will select the cheaper lithium iron phosphate (LFP) batteries from China.

Hyundai is expected to introduce the Casper Electric in the second half, an electric version of the Casper small-size SUV launched in 2021.

KG Mobility's Torres EVX, the electric version of the hit Torres SUV. [KG MOBILITY]

Casper small SUVs are manufactured at a factory in Gwangju [YONHAP]

KG Mobility, previously known as SsangYong Motor, will introduce O100, the country's very first electric pickup truck. Sales of Torres EVX, an electric SUV that was released in September, will likely increase further as it can be purchased for under 40 million won with government tax credits.

GM Korea is slated to launch Equinox EV, the cheapest EV option in its whole lineup, in Korea next year. Specific details about time and price have not been confirmed, but the price is reported to be set around the lower 40 million won range.

Cheaper EVs will also be available from imported brands.

Delivery of Volvo's EX30 small-size SUV will start early next year. It is the smallest EV from the Swedish automaker, with the price being knocked down to the early 40 million won range including the government subsidy.

Volvo's EX30, its smallest and cheapest EV lineup [VOLVO CARS KOREA]

Demand for cheap EVs has been growing recently with the price war intensifying among global automakers amid lingering economic uncertainties.

Tesla began the race by releasing the Shanghai-made Model Y in Korea, which was released for 56.99 million won compared to its original price of 78 million won. It cut the price by using cheaper Chinese LFP batteries.

Including the government credits, the car can be purchased for less than 50 million won.

A total of 4,206 low-cost Model Ys were sold in September, becoming the No. 1 model from imported brands. A full 93 percent of Teslas sold in Korea were the cheap Model Ys.

Kia's mini Ray EV [KIA]

Kia's Ray mini EV is also selling like hotcakes, with more than 6,000 orders being made in a month of introduction. Its initial target was 4,000.

The car can be purchased at less than 20 million won including the government subsidy.

"Nine out of the 20 most-sold EVs in the world were cheap EVs made in China priced under $25,000, which shows that customer demand for low-cost EVs is higher than expected," said Jo Hee-seung, a researcher at Hi Investment & Securities.

"Sales of cheap EVs will expand rapidly in the second half of next year."

BY SARAH CHEA [chea.sarah@joongang.co.kr]