Kia CEO stands firm on electrification strategy, premieres EV4 in Europe

TARRAGONA, Spain – Despite a temporary slowdown in electric vehicle demand and intensifying competition from Chinese automakers, Kia Corp. remains committed to its electrification strategy, raising its EV sales target eightfold by 2030, Chief Executive Song Ho-sung said.

Speaking at 2025 Kia EV Day held in Tarragona, Spain, earlier this week, Song said Kia, South Korea’s second-largest automaker, is steadfast in its goal to increase its EV sales ratio to 37% of total sales volume by 2030.

“The auto industry is experiencing growing uncertainty, with many competitors revising their EV plans,” he said. “However, we won’t change our electrification strategy.”

He attributed the company’s record-breaking performance last year to its ability to profit from EV sales while maintaining a flexible mixed-production system that adapts to shifting demand.

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At 2025 Kia EV Day, the sister firm of Korea’s top automaker Hyundai Motor Co. premiered its latest EV models set to propel it to its ambitious annual EV sales goal of 1.6 million by 2030 versus 200,000 units in 2024.

EV models released at the Europe event were the Kia EV4, its first electric midsize sedan, and the EV2 concept, a compact SUV, targeting mainstream EV buyers.

Kia said the two models, which follow the EV3 launched last year, are designed to capture the “early majority” of EV adopters.

The company also debuted its first purpose-built vehicle (PBV), the PV5, at the event, signaling a full-scale entry into the electric light commercial vehicle (LCV) market.

On the sidelines of Kia EV Day, Kia signed a strategic partnership with Samsung Electronics Co. to enhance its PBV ecosystem.

Under the partnership, Samsung’s AI-based Internet of Things platform SmartThings Pro will be integrated into Kia’s PBVs, to allow corporate clients to optimize logistics, fleet management and vehicle functionality through IoT connectivity, according to Kia.

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Despite the growing presence of Chinese automakers in global markets, Song said he is optimistic about Kia’s competitive standing.

“In regions such as Latin America and the Middle East, competition with Chinese brands is intense, but Kia’s presence remains strong,” said the Kia CEO. “Our focus is on reducing price gaps with Chinese models while maintaining our superior service network and quality standards.”

In its ramped-up offensive, China’s EV giant BYD Co. last month brought its passenger EVs – the Seal midsize sedan and the Atto 3 compact SUV – to the Korean market to rival the Hyundai IONIQ 6 and the Kia EV3.

With Chinese automakers building factories in Hungary to bypass EU tariffs, Song said Kia doesn’t have plans to build another plant in Europe.

“Our priority is converting our Slovakia plant into an EV production hub. If demand rises there, we can export vehicles from Korea,” he said.

Starting this year, Kia will produce the EV4 hatchback and the entry-level electrified model EV2 in Slovakia as Chinese automakers have been slapped with up to 45% countervailing import duties in the region since last year.

Addressing concerns about the impact of a 25% US tariff on foreign-made vehicles, Song said Kia is working on counter-measures under multiple scenarios. “The key is how quickly we can respond once tariffs are set,” he said.

SPECIFICATIONS

Europe is Kia’s largest overseas EV market, accounting for 34% of its entire global EV sales.

Kia’s EV4, a midsize sedan set to rival Tesla Inc.’s Model 3, was a key highlight of the EV Day event.

With a 533-kilometer (331-mile) range on a single charge, the EV4 boasts the longest range among Hyundai Motor Group’s EVs. It can run 5.8 km per kWh, the best in Kia’s EV lineup.

The model is expected to be priced at 37,000 euros ($38,750), slightly above the EV3, in the European market. The sedan variant will be built in South Korea, while the hatchback version will be produced in Slovakia. Kia has set an annual sales target of 160,000 units for the EV4.

Kia plans to churn out 80,000 units of the EV2 from its plant in Slovakia in 2025 to sell them only in Europe and then expand output to 100,0000 units in 2026.

The EV2 will be released in two models: one powered by nickel-cobalt-manganese (NCM) batteries, the other equipped with more affordable lithium iron phosphate (LFP) batteries.

The EV2, likely to be priced at 30,000 euros in Europe, is expected to compete with BYD’s Dolphin, Volkswagen’s ID.2, Peugeot’s e-2008 and Tesla’s Model Q.

Kia said its PV5 aims to challenge the Ford Transit and Renault Kangoo in the LCV market, which is forecast to grow to 4 million units globally by 2030.

The PV5 is built on Kia’s dedicated E-GMP.S platform, a scalable skateboard platform that allows for various vehicle configurations.

The Kia PV5, a modular vehicle, will come in various versions, including the PV5 High Roof, PV5 Van, PV5 Chassis Cab, PV5 robotaxi and PV5 Pickup.

“Our strategy is clear,” said Song. “We will continue to drive forward, ensuring that Kia remains at the forefront of the EV revolution.”

Write to Jung-Eun Shin at newyearis@hankyung.com

In-Soo Nam edited this article.