Kia unveils EV3 compact electric SUV with competitive pricing strategy

Today, Kia launched its first compact electric sports utility vehicle (SUV), the EV3, built on its dedicated Electrified-Global Modular Platform (E-GMP). This move comes as the South Korean automaker aims to attract buyers with competitive pricing amidst a slowdown in the global EV market.

The EV3 is part of a broader strategy by Hyundai Motor Group, which includes Hyundai, Kia, and premium brand Genesis, to introduce over 31 electric models by 2030. Additionally, Kia has set an ambitious target to sell about 1.6 million EV units by the end of the decade.

Moreover, Kia’s President, Song Ho Sung, emphasized the company’s focus on affordability, stating that the EV3 will be priced between $35,000 and $50,000. “The main barriers are pricing issues and charging infrastructure. We are making the EV3 more accessible to our customers with pricing levels that consumers expect for our vehicle,” Song said during a press conference.

In addition to the SUV, the automaker plans to develop a wide range of EV models priced between $30,000 and $80,000, including the smaller EV5 and EV4. This strategy is similar to Volvo’s approach, which launched the EX30 electric compact SUV last year with a starting price of around $38,973.

The launch of the EV3 comes at a time when consumer demand for hybrid vehicles has surged while EV sales have slowed. In the first quarter, Kia’s hybrid sales rose by about 31% to 93,000 units, whereas EV sales increased by 8% to 44,000 units.

Nevertheless, Kia aims to achieve an annual sales target of 200,000 units for the EV3 worldwide, including markets in the U.S., Europe, South Korea, and others. 

The EV3 will be available in South Korea starting in July, with a European launch expected later this year and a U.S. launch planned after 2025. According to Song, Kia’s ongoing assessment of the U.S. EV tax credit policy has caused the delayed U.S. launch.

The electric SUV will also offer two battery pack options—58.3 kilowatt hours (kWh) and 81.4 kWh. The long-range model is expected to have a driving range of approximately 373 miles on a single charge.