Kia has confirmed that it will be developing an affordable electric city car – potentially bringing the price down to sub €20,000 for the first time.
It's likely that the model will be called the Kia EV1.
Kia is looking to address one of the biggest problems facing electric cars – the price.
With a wide selection of models, the company already offers good value, but when compared to the starting price of combustion cars, there's a gulf in what you're being asked to pay.
Kia currently has models running from the EV9 at the top end – with a big price tag attached to it – down to the Kia EV3, which is in the process of launching right now. But that smaller model still costs over £30,000 / $35,000 – out of the price range of many people.
Kia previously confirmed that it had plans for the Kia EV2, with an expected launch in 2026, but now the company president, Ho-sung Song has told Autocar that the "next, next target" is for a smaller electric city car, with a price under €20,000 (or around £16,850 / $22,248). This would open up the market to those who currently dismiss electric cars as being too expensive.
This new Kia – likely to be called the Kia EV1 – will take some time to develop, so it's more likely to launch closer to 2030. The Kia EV1 would replace the Kia Picanto which currently starts at around £15,000 / $18,000.
The problem comes with the cost of the battery. While a high-performance model or a seven-seater with plenty of features will appeal to those with more money to spend, as budgets get tighter, convincing people to move to an electric car gets a lot more difficult.
Who else is pursuing the affordable EV dream?
When VW announced its ID range with the ID.3, it outlined its aims to reduce the gap with combustion models and have electric cars at all prices. The VW ID.1 would likely be that model, offering a similar size as the VW Up. Skoda will follow along the same lines and is also looking to get a sub-€20,000 car to market by 2030.
There have long been rumours of a cheaper Tesla, too – often referred to as the Tesla Model 2 – which won't get below the €20,000 threshold but is likely to come in around €25,000. That could see it compete with the likes of the Renault 5, which again is a new model that's just launching.
Currently if you're looking for an affordable EV, one of your best choices is the MG EV4 or the Fiat 500e. The next five years will be really interesting for electric cars. As the research and development that has gone into expensive models trickles down across the decade, it won't be long before electric cars are within reach of all buyers.
