Kia is growing in China as most foreign automakers are rapidly losing market share. Foreign automakers like Toyota, Volkswagen, and GM are struggling to keep up with aggressive price cuts and an influx of new competition. After launching its new low-cost electric SUV, the EV5, Kia is already seeing the results, as brand sales in China topped 20,000 for the third straight month in August.
Kia officially unveiled the EV5 at the Chengdu Motor Show last August, claiming it “brings a new era of electric mobility to the compact SUV sector.”
The EV5 shares much of the design and tech from Kia’s larger EV9 but in a smaller, more affordable package. At 4,615 mm long, 1,875 mm wide, and 1,715 mm tall, the EV5 is roughly the size of Tesla’s Model Y (4,760 mm long x 1,921 mm wide x 1,624 mm tall).
Powered by a 64.2 kWh BYD Blade Battery, the EV5 gets up to 329 miles (530 km) CLTC driving range. The longer-range (88.1 kWh battery) model is rated with up to 447 miles (720 km) driving range.
Kia launched the EV5 in China last November, starting at just $21,000 (149,800 yuan). The price undercuts the Model Y, which starts at around $35,000 (249,900 yuan).
According to Kia’s Chinese joint venture partner, Jiangsu Yueda Kia, the EV5 is already making an impact.
The company announced it sold 22,498 vehicles in August, up 36% from last year. August was Kia’s best month so far in 2024 and its third straight month of topping 20,000 in brand sales.
Kia EV5 charges up sales streak in China
“By sustaining monthly sales of over 20,000 units, Kia has shown it’s on the right path in China,” Kim Sung-rae, a Hanwha Investment & Securities market analyst said.
Kia’s sales in China, including exports, reached 154,243 through the first eight months of 2024, a 61% jump from last year.
According to TheKoreaHerald, Kia is now a top-selling brand among joint venture automakers in China.
Kia expects to sell over 230,000 vehicles by the end of 2024 at its current pace. If Kia hits its mark, it would be the first time it has crossed the 200,000 sales mark since 2020.
The EV5 has been a key factor as Kia revamps sales in China. Kia sold nearly 6,000 EV5 models in China through July.
Kia exports in China are also surging. As of August, its Yancheng plant exported over 300,000 vehicles, the highest among joint venture partners in China.
Electrek’s Take
While many foreign automakers have struggled to keep pace in China’s fast-moving EV market, Kia is taking advantage.
Earlier today, Electrek reported (based on a Bloomberg report) that Volkswagen’s Chinese joint venture with SAIC is eyeing a possible plant closure due to overcapacity.
Kia’s new low-cost EV5 is helping the brand compete with domestic automakers like BYD, which dominate the market. BYD’s Seagull EV, which starts at under $10,000 (69,800 yuan), was China’s top-selling car in August, with nearly 41,000 models sold
Kia is launching the EV5 in new markets like Australia and New Zealand later this year, likely boosting sales further.
China is not the only market in which Kia’s sales are surging. Last month, Kia sold more vehicles in the US than it ever has. With over 75,200 cars sold in August, Kia topped its US sales record for the third consecutive month.
Kia’s first three-row electric SUV, the EV9, is helping drive growth in the US. Through August, Kia has sold nearly 13,900 EV9 models in the US this year.
With a series of low-cost EVs, including the EV3 and EV4, rolling out globally, Kia will be a brand to watch over the next few quarters as it takes on market leaders.