Kia is launching several lower-priced electric vehicles, but an even more affordable one, starting at about $25,000, could be in the cards. Kia said we could see “a cheap EV” in the future, but it will depend on one very important factor.
Is Kia planning to launch a cheap EV?
If you thought the EV3, Kia’s compact electric SUV, was affordable with prices starting at about €35,990 ($40,700) in Europe, just wait until the EV2 arrives.
Kia is set to begin building the EV2 at its Slovakian plant in February 2026. The entry-level electric crossover SUV is expected to be priced below €30,000 ($35,500) and will sit below the EV3 in Kia’s expanding lineup.
According to Kia’s European boss, Marc Hedrich, the company could launch an even cheaper EV1 model. Hedrich told Automotive News in an interview that “we might have an EV1 one day,” but only if the electric car is profitable.
Kia is “one of the world’s most profitable automakers,” Hedrich explained during the interview, adding it has “zero interest in not making enough money.”
Like every automaker, Kia is investing heavily in software and other EV tech, which Hedrich called “an investment cliff.” Since you need to finance those investments, Kia’s EU boss said, “you cannot currently make enough money with a cheap EV.”
“To sell an EV even at €22,000 you have to make compromises on content, which is not something Kia is interested in doing,” Hedrich told Automotive News.
Top comment by Larry4pyro
I’d like to see a cheap commuter EV for under $25K. Simple car, small battery, short range maybe 150 miles, no fancy infotainment system, simple interior, small cheap tires on steel rims. Designed to be charged at home using cheap off peak electricity, or solar. No DC fast charging. Super low operating costs, could also qualify for low insurance costs as well. GM is close with their upcoming $30K Bolt. With a little work I think they can do it and still make a profit.
In the meantime, Kia will work to fend off the incoming wave of lower-priced Chinese electric cars in Europe. When asked how the company will respond, Hedrich admitted that “the Chinese are going to grow,” but, like everybody, they will “eventually reach a ceiling.”
Kia’s European CEO stressed that “brand equity is still very important,” adding, “it’s my job to fight the Chinese on price.”
Meanwhile, brands like BYD, MG, and Geely are quickly gaining market share in the region with low-priced, often more advanced electric vehicles.
The Kia EV3 was the best-selling retail EV in the UK and one of the most popular in Europe in the first half of the year. With the EV4 and EV5 rolling out, followed by the EV2 in early 2026, Kia looks to solidify its position in the market.
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