Kia plotting cut-price electric car

If you thought the only affordable electric vehicles coming in the next few years would be from Chinese car brands, think again.

Kia is readying an affordable entry-level EV that could slide underneath $40,000, undercutting Australia’s cheapest EV at present, the Chinese-built MG ZS EV at $44,990 drive-away.

Kia Australia’s product planning boss, Roland Rivero, told carsales there was a golden opportunity to offer a small and affordable EV soon, and that the arrival of potentially game-changing Chinese-made electric cars this year in Australia such as the BYD Yuan Plus small SUV and Ora Good Cat small hatch priced from around $35,000 have not gone unnoticed.

“We’re constantly monitoring the market and seeing how it responds to what’s coming out there. And who’s to say we’re not looking at that already?” he said, referring to a small, cost-effective EV.

Australia’s top-selling electric car at present is the Chinese-built Tesla Model 3 that’s priced from $59,990 plus on-road costs and racked up more than 12,000 sales in 2021.

Kia has made no secret of its desire to be a leader in the fast-growing EV market, and while Rivero wouldn’t be drawn on the rollout of its expanding portfolio – which currently comprises the Kia Niro and sold-out Kia EV6, and will almost certainly include the Toyota Prado-sized Kia EV9 three-row large SUV – he explained that its multi-billion-dollar E-GMP platform would be leveraged to deliver compact – and therefore cheaper – EVs.

“The beauty of this platform is that it’s modular and can to be shared across multiple vehicle sizes with front-, rear- and all-wheel drive,” he said.

“You can shrink it right down; it’s a very flexible platform that will give us the ability to house numerous vehicle types and sizes. Watch this space.”

Kia’s first compact EV is expected to hit the streets from 2023, possibly with Kia EV3 or Kia EV4 nameplates.

However, Rivero stopped short of confirming timing.

“When we’re ready to make an announcement, we will,” he said.

Kia Australia’s chief operating officer Damien Meredith said the flourishing Chinese brands such as MG and GWM/Haval were seen as a genuine threat.

“Definitely. We treat all competitors with respect and it doesn’t matter if they’re German or Chinese. If they’re making inroads into the market, which the Chinese are, and MG especially has done incredibly well over the last few years with their growth,” he said.

“You’ve got to treat them with respect and look at what they’re doing.”

MG sold almost 40,000 new vehicles in Australia last year, breaking into the charts as a top-10 brand for the first time.

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