Key Takeaways
- Kia’s EV3 has become the best-selling EV in the UK, with plans for new models like the EV5 and EV4 for Europe.
- The EV4 hatchback will be produced in Europe, while the EV5 is exclusive to the Canadian market in North America.
- New tariffs and the impending expiration of federal EV tax credits are driving Kia’s focus towards the European market over the US.
Kia’s Electric Vehicle Expansion
Kia is intensifying its focus on the European electric vehicle (EV) market, following the success of its compact SUV, the EV3. Launched in late 2024, the EV3 quickly became the most popular retail EV in the UK, boasting nearly 6,300 registrations and ranking as the fourth most popular overall when accounting for commercial vehicles.
Building on this momentum, Kia is set to introduce several new models. In June, the EV4 hatchback was released for pre-order, marking Kia’s first all-electric hatch. Shortly thereafter, a Fastback version was unveiled. The upgraded EV5, a European variant of Kia’s EV aimed at competing with Tesla’s Model Y, is scheduled to be launched later this year in Europe, with deliveries expected to begin in September.
The EV4 will be the first Kia electric vehicle manufactured at the Zilina plant in Slovakia, aimed at hastening delivery times. However, the sedan model will continue to be produced in South Korea. The EV5 will follow suit in Europe, arriving later in 2024, while its counterpart in North America will be limited to the Canadian market, set for early 2026 launch.
Next year, Kia plans to reveal the EV2, a smaller and more affordable option that will serve as the entry-level electric vehicle in its lineup. Despite testing in the US, the only model confirmed for the country is the EV4, with a launch expected in early 2026.
Pricing for the EV4 is anticipated to start around $35,000 in the US, with the hatchback variant in the UK priced at approximately £34,695 ($47,700), offering a driving range of up to 388 miles on the WLTP cycle. The Fastback variant is priced from £40,895 ($55,000) with a range of up to 380 miles.
Additionally, Kia is set to roll out the PV5 electric van across Europe, although its availability in the US remains uncertain.
The company’s strategic shift toward Europe can be attributed to new tariffs imposed by the Trump Administration, which have introduced a 15% tariff on vehicles imported from South Korea. The potential expiration of the $7,500 federal tax credit by the end of September further complicates the landscape for EV sales in the US, making the competition fiercer.
Kia’s EV sales have already been impacted, showing a significant decline compared to last year—selling nearly half the number of EV9 and EV6 models through July compared to 2022. The company anticipates that new model launches in Europe will help counterbalance this downturn in the US market.
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