Kia shrugs off slowing EV demand to launch new EV3 electric SUV

23 May 2024 - 12:52 By Reuters
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Both the EV3 Standard and Long Range versions utilise a 150kW/283Nm electric motor, which enables 0-100 km/h in 7.5 seconds. Maximum speed is limited to 170 km/h.
Both the EV3 Standard and Long Range versions utilise a 150kW/283Nm electric motor, which enables 0-100 km/h in 7.5 seconds. Maximum speed is limited to 170 km/h.
Image: Supplied

Kia launched on Thursday the company's first compact electric sports utility vehicle built on its dedicated EV platform, betting it can win over buyers through competitive pricing even as momentum in the global EV market stalls.

The EV3 is one of more than 31 electric models that Hyundai Motor Group — which includes Hyundai, Kia and premium brand Genesis — plans to introduce in the period through to 2030. Kia said in April that it aims to sell about 1.6-million EV units in 2030.

Kia President Song Ho Sung said the South Korean carmaker aimed to price the EV3, based on the dedicated Electrified-Global Modular Platform (E-GMP), in a $35,000 (R644,081) to $50,000 (R919,797) range.

“Mainly the barriers are pricing issues and charging infrastructure. And we are making the EV3 very much accessible to our customers with the pricing level that customers are expecting for our vehicle,” Song told reporters at a press conference ahead of the launch.

The EV3 Standard model is offered exclusively with a 58.3kWh battery, while the EV3 Long Range variant is fitted with an 81.4kWh battery.
The EV3 Standard model is offered exclusively with a 58.3kWh battery, while the EV3 Long Range variant is fitted with an 81.4kWh battery.
Image: Supplied

In October, Kia said it intended to develop a wide range of EV models priced between $30,000 (R551,878) and $80,000 (R1,471,676), including smaller EVs like the EV5, EV4, and EV3.

In comparison, Volvo Cars last year launched its EX30 electric compact SUV with a starting price of around €36,000 (R718,257) as the Swedish brand owned by China's Geely also targets cost-conscious consumers.

The launch of the EV3 comes as consumer demand for hybrid vehicles has surged, while EV sales have been cooling.

In the first quarter, Kia's hybrid sales rose about 31% from a year earlier to 93,000 units, while its EV sales increased 8% to 44,000 units.

A near-30-inch widescreen display – including a 12.3-inch cluster, a five-inch air-conditioning panel, and another 12.3-inch AVN display – incorporates seamless touch operation of the climate control functionality and provides clear graphics and intuitive information to the driver.
A near-30-inch widescreen display – including a 12.3-inch cluster, a five-inch air-conditioning panel, and another 12.3-inch AVN display – incorporates seamless touch operation of the climate control functionality and provides clear graphics and intuitive information to the driver.
Image: Supplied

Song said Kia aimed to achieve an annual sales target for the EV3 of 200,000 units worldwide, including in the US, Europe, South Korea and other markets. Kia did not elaborate on which year the target will be applicable from.

The EV3 will be available in South Korea from July, with a European launch expected late this year and a US launch sometime after 2025. The delayed US launch is because Kia is still assessing the US EV tax credit policy, said Song.

The EV3 will come with two battery pack options — 58.3kWh and 81.4kWh — and will begin production in South Korea, Kia said.

The EV3's long-range model will have a driving range of about 600km on a single charge. 


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