Kia Picanto could switch to pure-electric power

A battery-powered Kia Picanto is claimed to be in development but will only be green-lit for production if the car-maker's bean counters can find a way of slashing costs to make it affordable for buyers.

According to Kia Motor Europe COO Emilio Herrera, it's not a question if the car-maker will produce a zero-emissions version of the Picanto -- but when.

Herrera told

Herrera said the internal battle to produce a small electric car is reducing its sales price to at least €16,000 ($A26,000) – a price point he thinks buyers (in Europe at least) would consider reasonable.

Currently, if Kia produced a Picanto EV it would cost €20,000 ($A32,500) – twice what the entry-level petrol Kia micro-car costs in Euro markets like Germany.

Since even the world's biggest car-maker, the Volkswagen Group, struggles to sell its VW e-Up or Skoda Citigo EV for less than €20,000, Herrera suggests it's a huge problem for the whole industry.

Except for Renault.

At the Frankfurt motor show earlier this month the French car-maker revealed a battery-powered car that it said would cost less than €10,000 ($A16,200) within five years, although Kia's COO is not convinced that will be achievable.

Herrera: "I think that is a very bold statement because one of the most challenging things we have is to make all EVs profitable. And the smaller the car, the more complicated it is. So, to have a €10,000 EV in that time frame, I see it very challenging and not very realistic."

But Herrera suggests that helping share the cost of a zero-emission Picanto will be a sister model from Hyundai -- a version of the new i10 that will be identical under the skin.

While other car-makers like Ford and Opel have already announced they will axe the Ka+, Karl and Adam, Herrera said Kia would remain committed to small cars like the Picanto, because in some markets like Italy they still account for more than 50 per cent of all cars sold and that demand for EVs is only set to grow.

The European boss also said Kia remains committed to having an electric model in "almost every main segment."

Herrera added that in 2019 in Europe alone the Kia brand will sell 20,000 battery-powered Soul and Niro SUVs, and it expects to double that figure in 2020.

In fact, such is the demand in the northern hemisphere for the e-Niro and e-Soul that Kia Australia has been forced to push back the launch of both cars here until later 2020 or early 2021.