South Korean automaker Kia is on track to export its all-electric SUV, EV5, from China at a price that undercuts the popular Tesla Model Y.
Kia starts EV5 production in China
According to Car News China, Kia has finally started producing EV5 export models in China.
Kia produces the EV5 in South Korea for its domestic market, while its Yancheng factory in China produces the model for export.
As part of the company’s expansion efforts, the Kia EV5 will soon be available in other key left-hand and right-hand drive markets.
Kia reportedly eyes the Thai and Australian markets first for the planned export. A global launch is scheduled for 2025. The company has yet to announce if the electric SUV will also compete in the US.
The Kia EV5 is expected to undercut the pricing of the Tesla Model Y in Australia, which is currently the top-selling SUV model in the country.
“Kia Australia is confident the EV5 will suit the needs of many new car buyers who now, more than ever, are considering the move into a full battery electric vehicle. Sourcing Australia’s stock from the China factory allows us to launch earlier and secure supply of up to 850 per month, which is needed to target mainstream appeal.”
Kia Australia’s Chief Executive Officer, Damien Meredith
What’s currently known about the electric SUV?
Kia reportedly plans to launch three variants for the EV5, including the base-level Air, Earth, and higher-end GT-Line.
The Air and Earth variants will hit the Australian market in June, followed by the GT-Line between October and December this year.
The standard trim features a 64.2 kWh battery pack from BYD a 160 kW motor, enabling a CLTC-rated driving range of up to 530 km (329 miles). Meanwhile, the long-range model uses an 88.1 kWh BYD Blade battery that delivers a maximum CLTC-rated range of 720 km (447 miles).
Unlike the Kia EV6, the EV5 does not ride on the 800-volt E-GMP electric platform. It only uses a 400-volt variant.
Kia said that the the EV5 can support a 30-80% charge time in just 27 minutes using a DC fast charging at a peak of about 150kW.
Pricing
The Kia EV5 starts at approximately 149,800 yuan ($20,000) in China. However, its entry-level Air variant is expected to cost just below $70,000 AUS (around $46,000) when it hits the Australian market. However, the GT-Line variant is expected to sell at approximately $80,000 AUS ($52,790 USD).
For reference, the Australia-spec Tesla Model Y costs $65,400 AUS ($43,160 USD).
Kia has yet to officially announce the exact pricing. However, Kia’s signature strategy hints that it will also price the model competitively to beat the prominent Tesla Model Y.
“It needs to be competitive up against Model Y. The aim is to target mainstream type of [sales] volumes. It’s important that we position it accordingly – at least at the entry-level – to even undercut the Model Y price on the road.”
Roland Rivero, General Manager for Product Planning at Kia Australia (via Drive)
Kia plans to deliver the Kia EV5 to showrooms as early as June, with an initial target of 10,000 units. For comparison, Tesla Model Y delivered around 29,000 units in Australia last year.
It would be interesting to see if Kia would also launch the EV5 in the US as part of its global launch effort, which is due next year.
