Kia Targets Sub-$30,000 EV Market with New Entry-Level Model Development
Key Insights
Kia is actively developing an ultra-affordable electric vehicle, aiming for a starting price below $30,000 (€25,000), to expand its entry-level EV portfolio.
This new model will sit beneath the upcoming EV2, which is slated for a 2026 launch, demonstrating Kia's commitment to diverse EV offerings.
The company's CEO, Ho Sung Song, confirmed the project, indicating it will not immediately replace the gasoline-powered Picanto but will be a long-term strategic addition.
Drawing design inspiration from minimalist brands like Muji, Kia plans to leverage its new software-defined vehicle architecture for flexible platform development.
Kia Corporation is strategically advancing its electric vehicle portfolio with the development of an ultra-affordable model, targeting a starting price below $30,000 (€25,000). This new entry-level EV is designed to sit beneath the upcoming EV2, which Kia previewed at its EV Day event in April and is slated for a 2026 production launch, underscoring the automaker's aggressive expansion into diverse electric segments.
The initiative reflects Kia's broader commitment to a comprehensive EV lineup, which already includes models like the EV3, EV4, EV5, EV6, and EV9. Ho Sung Song, Kia's President and CEO, confirmed the company's focus on these accessible models, telling Autocar that the sub-€25,000 EV was a critical area of ongoing study and development. This strategic focus aims to capture a larger share of the burgeoning global EV market by addressing price sensitivity, a key barrier to widespread adoption.
While the new affordable EV is in development, Kia does not intend to immediately phase out its current gasoline-powered city car, the Picanto. The Picanto will remain available until the new electric counterpart can be produced at the targeted price point, ensuring a smooth market transition. Although a definitive launch date for the ultra-affordable EV has not been set, industry analysts anticipate its arrival towards the end of the decade, potentially coexisting with conventional models.
Design considerations for the forthcoming model are drawing inspiration from minimalist aesthetics, with Kia's design director, Karim Habib, citing the popular Japanese brand Muji as an influence. This design philosophy is expected to contribute to cost efficiency and broad consumer appeal. Furthermore, Kia is leveraging its new software-defined vehicle (SDV) 800V architecture, which will underpin future models including next-generation EV6 and EV9. CEO Song emphasized that decoupling hardware and software allows for greater flexibility in vehicle design and production, enabling the creation of diverse vehicle types from a common platform, thereby optimizing development costs and accelerating market entry for new models.
This strategic push into the sub-$30,000 segment positions Kia to significantly impact the global EV landscape, driving competition and accelerating the transition to electric mobility by making clean transportation more attainable for a wider demographic.