Kia Motors Corporation announced plans to combat declining electric vehicle (EV) resale prices in Australia through a new guaranteed future value program, targeting its latest electric models such as the EV6 and Kia EV9.
Concerns over diminishing battery capacity in some of Australia’s earliest EVs have contributed to a downward pressure on used-vehicle prices, prompting Kia to devise a strategy to mitigate this trend. The forthcoming program, set to be rolled out later this year, aims to safeguard the future values of Kia EVs.
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Kia Australia CEO Damien Meredith underscored the importance of such initiatives, stating, “We donāt have a Guaranteed Future Value on any of our products at this point in time, and thatās where we need to be.” He acknowledged ongoing efforts to implement the program while emphasizing the need for further development.
While specifics of the program are yet to be disclosed, Kia has clarified that it will exclusively apply to new purchases and will be integrated into the company’s new-car finance offerings. Additionally, Kia is collaborating with local partners on battery reconditioning, with a focus on cell-by-cell rejuvenation to enhance driving range and energy capacity.
“We were out at a place that looks at fixing up EV batteries. So all those things are going to play a part,” Meredith explained, highlighting the efforts to revitalize battery performance. He expressed optimism about the potential of battery regeneration, likening the process to restoring battery packs to a new state.
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Despite Kia’s proactive approach, Meredith cautioned that progress may be gradual, citing the need for approval from the company’s South Korean headquarters. The CEO also announced the forthcoming launch of the EV5 in Australia, expanding Kia’s electric vehicle lineup alongside the EV6 and EV9.
In parallel with its efforts to address resale concerns, Kia recently completed upgrades to its first EV plant in South Korea, positioning itself to manufacture new entry-level EVs including the EV3 and EV4. The company’s strategic moves underscore its commitment to bolstering its presence in the electric vehicle market while addressing evolving consumer needs.