Kia is following in Ford’s footsteps after announcing plans to introduce more hybrids as it expects a slowdown in demand for electric cars. To boost sales and fend off cheap Chinese rivals, Kia will also introduce a new variety of affordable electric cars. to hybrids starting this year.
After global sales fell 2% last month, Kia is turning things around with a new medium- and long-term plan.
The new strategy, unveiled Friday at Kia’s 2024 CEO Investor Day, focuses on electrification. Kia has announced that it is revising its EV plans to include more hybrid and electric cars.
Since its core rebrand in 2021, Kia has made notable adjustments to its products, design, and marketing efforts.
Kia Chairman Song Ho-Sung said on Friday that “we are responding well to market adjustments” with a new medium- and long-term strategy.
The company actively reacts to market changes, characterized by increased festive and geopolitical uncertainties. In reaction to the “slowdown in increasing demand for electric vehicles,” Kia plans to launch more hybrid vehicles and introduce new cheap electric models.
Kia expects the rate of expansion of electric cars to be slower than expected through 2026 due to the deteriorating economy and declining subsidies.
The Korean automaker is launching hybrid versions of its top models, such as the Carnival HEV, which it unveiled last year. Kia plans to have six HEVs in its lineup this year, eight in 2026 and nine in 2028.
With those new models, Kia expects hybrids to account for 12% of global sales, or about 372,000 units this year. By 2028, Kia expects that figure to reach 19% of sales, with around 800,000 units sold.
Kia forgoes all-electric cars. It plans to increase demand by launching a number of new affordable electric vehicles.
Kia will launch six electric cars in major markets, including North America, Korea and Europe. These will come with the EV2, EV3, EV4 and EV5, unveiled at Kia EV Day in October.
The new electric vehicles are part of Kia’s wide range that covers almost every single segment priced between $30,000 and $80,000.
Kia expects sales of its economy EV models to reach 131,000 this year (43% of EV sales), 263,000 in 2025 (55% of EV sales) and 587,000 in 2026, accounting for 66% of total EV sales.
Kia has already introduced the EV5 in China with an initial cost of around $20,000 (149,800 yuan), undermining much of the competition. In Australia, it is expected to start at around $46,000 (AUD$70,000).
The EV3 is expected to launch this year (if not in early 2025) starting at around $30,000 as the brand’s “brand vision of an all-electric compact crossover. “It takes much of the generation and design of its flagship EV9 and packs it into a smaller, more package.
Kia’s EV4, a entry-level electric sedan, is expected to stick around $35,000 next year.
Two of Kia’s committed EV plants in Korea are ramping up production of cheap models as the logo seeks to fend off cheap Chinese rivals like BYD.
Kia expects total EV sales to reach 307,000 this year, 1. 147 million in 2027 and 1. 6 million in 2030. The logo will continue to advance the generation of batteries for the diversity and power density of its vehicles.
Kia follows Ford (and several others), which this week announced plans to delay its three-row electric SUV. Like Kia, Ford will fill the void with affordable hybrid and electric vehicles.
However, Ford’s new cheap EVs may not be available until 2026. They’re expected to come with a smaller electric pickup truck and SUV, starting at around $25,000.
The EV5 costs £20,000 in China and £46,000 in Australia (70,000 AUD). Are they promoting at a great loss in China? Is the device different?A massive tax in Australia? I would like to understand.
Kia already offers one electric vehicle and is expected to launch several more through 2026. The Korean automaker has also launched a three-row electric SUV with the EV9.
In the U. S. , sales of the Kia EV9 surpassed 4000 units in the first 3 months of 2024 after its expired launch last year. The EV9 starts at less than $55,000 and offers more legroom in the rear than the Cadillac Escalade and 3-row Range Rover P400, either of which charge more than $80,000.
The shift to less expensive hybrid and electric vehicles comes as Kia sees deteriorating global economic conditions. Kia is still considering switching to electric vehicles, but due to the global economy, the automaker expects a slowdown in demand for electric vehicles over the next two years. years. He believes that less expensive models will fill this gap.
Meanwhile, Hyundai’s U. S. chief executive, Randy Parker, said the company is “fully committed” to electric vehicles as it looks to gain market share as competition pulls back (read more here).
Peter Johnson covers the automotive industry’s step-by-step transformation to electric vehicles. He is a seasoned investor, money writer, and electric vehicle enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is one of the main reasons he pursued a career in investing. If he doesn’t tell you about his latest discoveries in the 10K, you can spot him enjoying the outdoors or exercising.