Kia has announced plans to introduce a new electric vehicle (EV) model priced around $25,000, contingent on achieving profitability. The statement was made by Marc Hedrich, Kia’s European CEO, during an interview with Automotive News. While the company is currently focused on launching several lower-priced EVs, the viability of an even cheaper model hinges on the financial sustainability of producing such vehicles.
The anticipated model, known as the EV2, is set to be manufactured at Kia’s plant in Slovakia, beginning in February 2026. This electric crossover SUV will be positioned below the already popular EV3, which has a starting price of approximately €35,990 ($40,700) in Europe. The EV2 aims to be priced below €30,000 ($35,500), further enhancing Kia’s competitive electric vehicle lineup.
During the interview, Hedrich suggested that there could be a potential EV1 model in the future, although he stressed that profitability is paramount. “We might have an EV1 one day,” he stated, “but only if the electric car is profitable.” Kia has established itself as one of the world’s most profitable automakers, and Hedrich emphasized that the company has “zero interest in not making enough money.”
As the automotive industry invests heavily in electric vehicle technology and software, Hedrich described this period as an “investment cliff.” He pointed out that the financial backing required for such advancements makes it challenging to produce affordable EVs without compromising on quality. “To sell an EV even at €22,000, you have to make compromises on content, which is not something Kia is interested in doing,” he noted.
Kia faces increasing competition from lower-priced Chinese electric vehicles entering the European market. Brands like BYD, MG, and Geely are rapidly gaining market share with their competitively priced and often advanced electric models. Hedrich acknowledged the growing presence of Chinese manufacturers but expressed confidence in Kia’s brand strength. “Brand equity is still very important,” he said, adding, “it’s my job to fight the Chinese on price.”
In the first half of the year, the Kia EV3 emerged as the best-selling retail EV in the UK and gained popularity across Europe. With the forthcoming launches of the EV4 and EV5, followed by the EV2, Kia aims to solidify its status in the evolving electric vehicle market.
As the electric vehicle landscape continues to transform, Kia’s strategic approach emphasizes a balance between affordability and profitability, positioning the company for potential success in a competitive environment.