Kia is preparing to introduce an all-electric city car priced below €25,000 before the end of the decade, as part of a broader electrification strategy that will also include software-defined vehicles (SDVs) and range-extender technology for larger models. The move comes as the South Korean automaker aims to balance battery-electric, hybrid, and combustion powertrains to meet diverse global demand.
“We are studying and developing a sub-€25,000 EV. That is one area we are working on,” said Kia President and CEO Ho Sung Song in an interview with Autocar, confirming the company’s commitment to accessible electric mobility. The planned city EV will sit below the forthcoming EV2 and could eventually succeed the combustion-powered Picanto, which remains on sale following its 2023 update.
The new entry-level model is part of a larger plan to launch 15 battery-electric vehicles globally by 2030. Ahead of that, Kia will expand its affordable EV portfolio with the EV2, set to enter production in February 2026, and the electric Syros, a compact SUV targeted at the Indian market, due to be unveiled in April.
While full electrification remains the target in Europe, Kia’s product mix will continue to include hybrid, plug-in hybrid, and extended-range EVs (EREVs) for markets with limited charging infrastructure. “The final destination in Europe is EVs, which is why I want to be a very strong EV player in Europe,” Song said. “But if we look at worldwide demand, we should have alternative powertrains.”
Kia is also developing a new SDV architecture, aiming to decouple hardware and software for greater flexibility, faster development, and cost efficiency. The new platform, under development since 2021, will support future models including successors to the EV6 and EV9, and will enable frequent over-the-air software updates and personalised user interfaces.
A pilot SDV demonstrator, dubbed the “SDV Pace Car,” will debut in 2026 showcasing AI-powered autonomous driving features. Full-scale production using the new SDV platform is expected to begin in 2027. Additionally, the company will expand its PBV (purpose-built vehicle) lineup with the PV5 launching first, followed by the PV7 in 2027 and the PV9 in 2029.
Design and digital innovation remain core to Kia’s strategy. “If we repeat again and again [with the same design], maybe customers will feel it is boring,” Song noted, adding that Kia will continue to evolve its design language and concept models. The company also plans to integrate AI assistants—developed in partnership with firms like Samsung—across its vehicle lineup, aiming to deliver smartphone-like functionality and enhanced user experiences.
