Kia Corporation has announced plans to develop an even more affordable entry-level electric vehicle (EV), targeting a price point below $30,000 (€25,000). This strategic move, confirmed by Kia's President and CEO Ho Sung Song, underscores the automaker's aggressive push into the mass-market EV segment, aiming to broaden accessibility to electric mobility. The initiative positions Kia to capture a significant share of the burgeoning affordable EV market, complementing its rapidly expanding electric vehicle portfolio.
The forthcoming sub-$30,000 EV will sit beneath the Concept EV2, which Kia first showcased at its EV Day event in April and is slated for production launch in 2026. While the EV2, alongside the EV4 electric sedan/hatchback and PV5 electric van, represents Kia's initial wave of entry-level offerings, the newly announced model signifies a deeper commitment to cost-effective electrification. CEO Song described the development of this ultra-affordable EV as "homework," indicating its high priority within the company's long-term strategy.
Kia's current lineup already includes the EV6 and EV9, with the EV3, EV4, and EV5 set to roll out in the coming years. The introduction of a sub-$30,000 vehicle is critical for market penetration, particularly in regions where price remains a significant barrier to EV adoption. The company is not rushing to replace its popular gasoline-powered city car, the Picanto, with the new EV. Instead, the Picanto will remain on sale until Kia can achieve the targeted sub-€25,000 production cost for the new electric model, ensuring a seamless market transition and avoiding premature disruption to its established compact car segment.
While a specific launch date for the new EV remains unconfirmed, industry analysts anticipate its arrival closer to the end of the decade. Kia's design director, Karim Habib, noted that the company is drawing inspiration from minimalist design principles, citing the Japanese brand Muji as an influence. This suggests a focus on functional, streamlined aesthetics that could resonate with cost-conscious consumers. The company's broader EV strategy, including next-generation EV6 and EV9 models due by decade-end, will leverage a new software-defined vehicle (SDV) 800V architecture. CEO Song highlighted the flexibility of this approach, stating, "Because we are decoupling hardware and software, we can be more flexible, making different kinds of vehicles based on the same platform." This architectural shift is expected to enable more efficient development and cost optimization across Kia's diverse EV range, including the upcoming affordable model. This move by Kia signals a significant shift in the global EV market, emphasizing affordability as a key driver for mass adoption. It places pressure on competitors to accelerate their own low-cost EV development, potentially leading to a more competitive and accessible electric vehicle landscape worldwide.