Kia’s compact EV5 electric SUV has significantly contributed to the brand’s impressive performance in China, the world’s largest electric vehicle (EV) market. With a nearly 50% surge in sales last year, the EV5 helped Kia achieve its best sales results in four years, crossing the 200,000 mark for the first time since 2020. This remarkable growth placed Kia in the top position among joint venture brands in China.
China’s electric vehicle market continues to expand at a rapid pace, with a record 1.38 million new energy vehicles (NEVs), including both EVs and plug-in hybrid electric vehicles (PHEVs), sold in December 2024. This pushed the total NEV sales for the year to nearly 11 million, marking a 42% increase from 2023. This surge represents almost half of the 22.88 million total retail passenger vehicles sold in China last year. Meanwhile, local EV manufacturers like BYD are dominating the market, with affordable models like the Seagull, priced under $10,000, putting pressure on legacy automakers.
Kia, however, is competing strongly in this rapidly evolving market. The EV5, which launched in late 2023 with a starting price of around $20,000, has played a crucial role in the company’s success. The new model pushed Kia to a 49.2% sales increase in 2024, with the company selling 248,259 vehicles in China—its highest sales since 2020. Kia’s Chinese joint venture, Weda Kia, reported a full recovery, and the brand is now seeing consistent monthly sales of over 20,000 units, beginning in June 2024.
A significant factor in Kia’s resurgence has been the EV5, which offers an appealing mix of affordability and range. In November, Kia introduced a sportier GT Line trim, and the base EV5 starts at 149,800 yuan (approximately $21,000), offering a range of up to 329 miles (530 km). The Long Range model, powered by an 88.1 kWh battery, provides a range of up to 447 miles (720 km). Kia’s growth is further supported by expanding exports. Since last year, Weda Kia has been increasing exports to 76 countries, including Australia, New Zealand, Brazil, Saudi Arabia, and Southeast Asia, with plans to reach 80 countries and 180,000 annual exports. This strong export push aligns with Kia’s broader strategy for global growth.
Source: Newsis