Kia to revive Ray EV to kick start S.Korean city car market

Kia Corp., South Korea’s No. 2 automaker, aims to revitalize the local city car segment with the reintroduction of an electric version of the Ray, its famous minicar exclusively manufactured for the domestic market amid the global industry's move to target budget-conscious drivers with cheaper electric vehicles.

The carmaker of Hyundai Motor Group, the world’s third-largest automobile manufacturer, plans to relaunch its Ray EV next month, which the company stopped producing in 2018 due to its low mileage per charge and a lack of EV charging infrastructure in the country, according to industry sources on Sunday.

The new Ray EV runs 210 kilometers (130 miles) on a single charge based on the country’s Ministry of Environment as it has a motor with a maximum output of 64.3 kilowatts with a 30% improvement in performance and a 35.2-kilowatt-hour battery with nearly double the capacity of cells installed on the prior model. The mileage is about twice that of the former model, the first mass-produced EV in the nation.

“The new Ray EV is set to expand customers’ options with a mileage of more than 200 km, optimized driving performance for the metropolitan center and a spacious interior,” said a Kia official. “It s the best choice for customers waiting for an entry electric minicar.”

Kia is also set to release a single-seater van of the new electric city car, which is expected to attract the self-employed and small business owners, the company said.

TO REBOOT CITY CAR MARKET

Global carmakers such as Volkswagen, Hyundai Motor Group and Stellantis N.V. are in a race to release more affordable EVs with entry prices in the $25,000-$30,000 range, targeting budget-conscious drivers.

The new Ray EV is predicted to reboot South Korea’s small EV and minicar market, industry sources said. In Japan, seen to be lagging other countries in the EV sector, the Nissan Sakura electric micro vehicle has become a hit. 

The Ray ranked No. 10 in best-selling vehicles in the country after the G80, a luxury sedan of its affiliate Hyundai Motor Co.'s premium brand Genesis during the first seven months of the year. Sales of the Ray rose 12.6% to 29,399 units in the January-July period when the local minicar market shrank by 10.5% to 71,497 units, according to the Korea Automobile & Mobility Association.

For the first time since its launch in 2011, the city car is expected to stay in the top 10 best-selling car list this year with the new EV model, industry sources said.

The boxy minicar has already proved its popularity in the local market with annual sales growth since 2017.

Kia sold 44,566 Rays in 2022, more than double the 20,521 units of five years ago.

Write to Nan-Sae Bin at binthere@hankyung.com
 

Jongwoo Cheon edited this article.