Kia has positioned itself as a frontrunner in the electric vehicle (EV) market, particularly in the realm of affordable EVs, with its forthcoming EV3 subcompact crossover and EV4 sedan. The company’s success with models like the EV6 GT and the three-row EV9 has bolstered its confidence in capturing a larger share of the EV market.
In a recent interview with Automotive News, Kia America COO Steve Center expressed Kia’s commitment to staying ahead of rivals in the EV space. Center stated, “We’re ahead of most, and we’re trying to rush out ahead because our technology will be more evolved. You can’t just jump in and catch up. You have to have your own R&D, your own secret sauce.”
The production version of the EV3 crossover is set to debut early this summer, followed by the unveiling of the EV4 sedan. Speculation from Automotive News suggests that the EV3 could be priced around $32,000 in the U.S., positioning it as a highly competitive option in the affordable EV segment.
Kia’s focus on affordability aligns with the broader industry trend of lowering the cost of EVs to drive adoption. While Tesla reportedly shifted its focus away from developing a $25,000 EV, Kia sees Chinese automakers like BYD, Geely, and Nio as its main rivals in the affordable EV market. These Chinese giants offer competitively priced EVs with comparable quality to established players.
Although Chinese EVs currently have a limited presence in the U.S., many Chinese automakers have plans to expand into the market. However, Kia expects to have a significant share of the EV market, especially in the affordable segment, by the time these competitors enter the U.S. market.
Center highlighted the importance of the $7,500 federal tax credit, noting that it appeals more to households with lower incomes, especially when leasing a vehicle. Kia’s strategy to build affordable EVs in the U.S. could further enhance their appeal, particularly with the federal rebate.
While Kia has announced plans to produce its most expensive EV, the EV9, at its factory in Buford, Georgia, it has not confirmed plans for additional EV production in the U.S. However, Center’s comments suggest that Kia is considering expanding its U.S. production to capitalize on the significant federal rebate and make its affordable EVs even more appealing to consumers.
