The CEO of KIA Europe rules out cheaper electric cars than the EV2 and leaves the EV1 up in the air

The most affordable electric car from KIA is just around the corner. It is the KIA EV2, a compact SUV that will reach European dealerships in 2026 and whose selling price will be below €30,000. There is talk of a starting price of around €25,000 without promotions or subsidies. This model will take the entry-level position in KIA's growing family of electric vehicles. A position currently held by the KIA EV3.

It was taken for granted that the EV2 would not be the end of the offensive for affordable electric vehicles under the Korean manufacturer's brand. Eyes have been on the KIA Picanto. This very popular thermal utility vehicle in its category will need to electrify if it wants to survive in old Europe. Reports indicated a future 100% electric generation. There has even been speculation that a completely new model could replace the Picanto. The hypothetical KIA EV1. However, the company's plans are different.

KIA rules out electric cars cheaper than the EV2 and leaves the EV1 up in the air

Marc Hedrich, CEO of KIA Europe, has made some enlightening statements in which he rules out that the brand will go beyond the new EV2 in its commitment to affordable electric cars. The company has an unwritten rule that is strictly followed. Every car that is part of the range must be profitable and generate income.

These are turbulent times in the European automotive industry. Complying with strict emission and safety regulations means increasing costs. An increase in costs that ultimately affects the selling price. The top leader of the Korean brand in Europe emphasizes that electric cars have not yet reached price parity with thermal vehicles.

When directly asked about the possibility of KIA having a "little brother" for the EV2, an EV1, regarding the fact that electric vehicles still do not offer the same profit margins as thermal ones: "That doesn't mean that one day we could have an EV1, but KIA, one of the most profitable car manufacturers in the world, is not interested in not generating enough income".

KIA has no plans for cheaper electric cars than the EV2

The CEO of KIA Europe went a step further by stating that, to sell a small electric car for around €22,000, it is necessary to sacrifice equipment, which is "something that KIA is not interested in". Hedrich also analyzed the growing Chinese competition on European soil pointing to the brand value that KIA represents: "Yes, there are customers who choose the cheapest car on the market, but there are also people who would never buy a Chinese car. Brand value is still very important. That's why we must not lose our essence".

"It is not my place to compete with the Chinese on price, because if I did, we would disappear, as China has much larger economies of scale than ours," commented Hedrich.