Kia unveiled the EV 5 last week, announcing limited details about their latest electric vehicle that will first launch in China before expanding globally. Now the Korean automaker has announced the pricing for the EV5, and it could create another reset in the Chinese EV market.
Many industry experts pegged the EV5 at around $40,000, but Kia has almost cut that in half, announcing on Wednesday it will start at 159,800 yuan, or about C$29,700 or US$22,000. (via Korean Car Blog)
With a release in November, the EV5 could lead to further price cuts by both BYD and Tesla to keep up.
Kia can price the EV5 so aggressively for two main reasons. First and foremost, the Korean automaker is building the EV5 in China, which means shipping costs are next to nothing. Secondly, the company is using BYD’s Blade LFP batteries, which will also cut costs.
Kia nor any of the regulators have announced the specifics around battery capacity or range, but the vehicle is a compact SUV with a big interior. In fact, Kia spent significant time reworking the interior to create an interior space that can do everything its owners want to. The vehicle took a lot of inspiration from the EV9 and looked to create a home lounge that targets millennial buyers.
The vehicle could make a splash in the Chinese market. With its aggressive pricing and millennial-focused features, it could be a massive hit. One has to wonder if we will see a restart to the price wars or if the EV5 will undercut the Model Y and take market share away.
