Kia Launches First Compact Electric SUV Amid Slowing EV Demand

Kia unveiled its first compact electric SUV, the EV3, on Thursday, as the global EV market growth decelerates.

What Happened: The EV3 is part of Hyundai Motor Group‘s HYTMF plan to introduce over 31 electric models by 2030. Kia aims to sell approximately 1.6 million EV units by that year.

Kia President Song Ho Sung stated that the EV3 will be priced between $35,000 and $50,000, making it accessible to a broader audience.

“Mainly the barriers are pricing issues and charging infrastructure,” Song said at a press conference.

In October, Kia announced plans to develop various EV models priced between $30,000 and $80,000, including the EV5, EV4, and EV3. The EV3’s launch coincides with rising hybrid vehicle demand and cooling EV sales.

In the first quarter, Kia’s hybrid sales surged 31% year-over-year to 93,000 units, while EV sales grew 8% to 44,000 units. The company targets annual EV3 sales of 200,000 units globally, including the U.S., Europe, and South Korea.

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The EV3 will be available in South Korea from July, with a European launch later this year and a U.S. launch post-2025. The U.S. launch delay is due to ongoing assessments of the U.S. EV tax credit policy.

The EV3 will offer two battery options: 58.3 kWh and 81.4 kWh, with the long-range model boasting a 600-kilometer (373-mile) range per charge.

Why It Matters: The launch of the EV3 is a significant move for Kia as it navigates a challenging EV market. In October, Kia revealed three new electric models at its annual EV Day, emphasizing its commitment to expanding its EV lineup.

In April, Kia offered dealers cash incentives to clear inventory for new 2024 models, indicating a strategic push to make room for upcoming releases like the EV3.

Additionally, in March 2024, Kia bolstered its design team by hiring renowned auto designers from Mercedes and Geely, aiming to elevate its EV design and appeal to a broader market.

Price Action: Hyundai Motors was trading 3.81% higher at $60.45 on the Friday pre-market, as per Benzinga Pro.

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Image via official Press Release

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari