Kia to start EV production in Europe as early as 2025

Europe

MILAN – Kia will expand its range of full-electric models with a small crossover due to be launched in 2024 as well as a compact hatchback as soon as 2025 that would be the South Korean brand’s first EV assembled in Europe.

The two cars were revealed as part of Kia’s revised 2030 EV strategy, under which it will launch at least two full-electric vehicles a year starting in 2023, Kia Italy executives said last week at an event here.

Kia global CEO Ho Sung Song announced the new model roadmap in March at an investor day. By 2027, Kia will have 14 EVs in its global lineup. It currently sells three in Europe: the Soul and Niro small crossovers and the EV6 midsize crossover.

The brand’s previous EV plan called for a lineup of 11 models by 2026. Under the expanded plan, Kia will add two electric pickups, including one for emerging markets and an entry-level model.

These are some of the key elements of the revised plan:

  • 2023: The EV9 large SUV will be launched in the second half. It has already been shown in concept form. The EV9 will be sold in Europe, and will have a 100-kilowatt battery pack with a range of more than 540 km (335 miles);
  • 2024: Unnamed small crossover;
  • 2025: Minicar-sized crossover, potentially made in India. At the March investor event, Kia said India will become a production base for EVs “around 2025” for the “A+ to C segments” (minicar to compact). Also in 2025, a larger compact SUV at 4.6 meters long will be launched.
  • Around 2025: Europe-assembled compact-size hatchback. At 4.4 meters long, the car would be similar to the current Ceed hatchback, which is built in the Zilina plant in Slovakia. The Ceed and its variants (ProCeed and XCeed) are available as plug-in hybrids.
  • By 2027: Midsize fastback sedan. 
  • Unspecified date: Two “pickup/commercial” vehicles are set to be launched.

Giuseppe Bitti, Kia Italy chief operating officer, said at the event in Milan that the plan is still subject to final approval and that “dates may vary depending on market conditions.”

According to the 2030 roadmap to electrification presented in March, Kia aims to increase annual sales of all models to 4 million by 2030 from 3.15 million in 2022. Sales of full-electric cars should grow to 1.2 million by that date, from 160,000 in 2022 and 807,000 in 2026. Plug-in hybrids would account for 800,000 units by 2030.

Kia’s EV sales in Europe are expected to grow from 65,000 in 2022 to 309,000 in 2026 and 400,000 in 2030. The share of electric models in Europe will grow from 13 percent in 2021 to 51 percent in 2026 and 63 percent in 2030. The EU has mandated that only zero-emission cars can be sold in the bloc after 2035.

According to the plan, production of full-electric models will start in China next year, in the U.S. in 2024, and in Europe and India by 2025.

In Europe, small and medium-sized EVs will be produced starting from 2025. In the United States, where midsize SUVs and pickups are popular, electric versions of these models will be produced starting in 2024. In China, Kia plans to introduce midsize EVs in 2023, and entry-level and midsize EV models will be built in India starting in 2025.

Kia has gained the second-most market share in Europe since 2017, trailing only Toyota with an increase of two percentage points for a 5 percent share. Kia and sibling brand Hyundai have done a better job than rivals securing semiconductors and other components, analysts said, and their EV offerings have been extremely competitive.

The Niro was the No. 5-selling EV in Europe through September, with 30,768 units sold (-10 percent from 2021), according to Dataforce; the EV6, which is underpinned by the Hyundai Group’s E-GMP full electric platform, has been a success with 22,267 sales through September after launching at the end of 2021.

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