Kia plans to make affordable electric cars profitable through volume

Automaker Kia plans to make inexpensive electric vehicles profitable through sales volumes, InsideEVs reports, writes UNN.

Details

"Kia's new EV strategy doesn't rely on revolutionary technology or Silicon Valley-esque software promises. Instead, it's based on a time-tested method: produce a lot of cars and reap the rewards," the report says.

According to a new report from Automotive News Europe, Kia plans to produce a total of 200,000 units of the upcoming EV2 and EV4 models – 100,000 units of each – annually, starting in 2027. The idea is to make its electric vehicles both affordable and profitable, and Kia is taking this latter aspect very seriously when it comes to lower-priced cars, the publication writes.

As noted, Kia plans to almost triple its electric vehicle production in Europe over the next two years, a top executive of the automaker said.

"The average annual production volume of the future EV2 at the Žilina plant (Slovakia) is expected to be around 100,000 units by 2027," said Kia President and CEO Ho Sung Song in an interview with Automotive News Europe on October 1.

He added that Kia plans to increase EV4 production at the Žilina plant to more than 80,000 cars per year by 2027. "With additional supplies from Korea, the total global production of the EV4 is expected to reach approximately 100,000 units," he said.

Kia is expected to start production of the EV2 early next year. This miniature electric car is expected to be the brand's cheapest EV to date and will sell for around $35,000. To achieve such a low price without losing money, the brand only needs to establish mass production, the publication notes.

Song said that by producing 100,000 units each of the EV2 and EV4, Kia will ensure "sufficient volume for suppliers and make these models profitable."

Addition

Kia began production of the EV4 in Slovakia back in August. As production ramps up, the automaker is working to complete a $126 million investment at the plant, which will also facilitate the production of the EV2. Combined, the projected production volume of both models could be just over half of the plant's "expanded" capacity of 350,000 cars per year. About 20,000 units of the EV4 fastbacks will still be produced in South Korea.