Kia Targets Affordable EV Market with EV3 and EV4 Models

Kia, the South Korean automotive giant, is set to expand its electric vehicle lineup with the introduction of the EV3 and EV4 models, following the successful launch of its flagship, seven-seat Kia EV9. The company previewed the two new models late last year through concept vehicles, signaling its intent to tap into the more affordable segment of the EV market.

While Kia has not disclosed specific pricing for the EV3 and EV4, industry experts, including AutoPacific president Ed Kim, suggest that pricing them around the $35,000 mark would be a strategic move. This pricing strategy would position Kia competitively in the EV market, potentially outshining rivals and appealing to a broader consumer base.

See also: Kia EV9 Wins Women’s Worldwide Car of the Year 2024

Kim explained that the recent softening in EV demand could be attributed to oversaturation of luxury-priced EVs, which are often unaffordable for the middle class. He emphasized the importance for automakers to offer EVs at more accessible price points, such as the $34,000 range, to cater to mainstream consumers.

“The EV3 and EV4 are crucial for Kia’s expansion in the non-luxury segment,” Kim stated. “By addressing the mainstream market with these models, Kia can continue its growth as a non-luxury brand.”

The EV3 is envisioned as a smaller counterpart to the EV9, while the EV4 is designed as a sleek sedan. If priced competitively, the EV3 could directly compete with the Chevrolet Equinox EV, while the EV4 could undercut the Tesla Model 3 in terms of pricing.

See also: Kia Rolls Out $5,000 Discount on 2024 EV9 Electric SUV, Following Rivals’ in Price Cuts

For Kia to maximize its appeal to consumers, it will be essential for both the EV3 and EV4 to qualify for the full $7,500 federal EV tax credit. To meet this requirement, Kia is upgrading its Georgia plant to manufacture U.S.-spec versions of the EV9. While Kia has not confirmed the production location for the EV3 and EV4, analysts suggest that producing them at the Mexican plant in Nuevo Leon could be a strategic choice.