High hopes for strong EV5 sales: Kia

KIA Australia is going for big numbers and low prices for its EV5 electric mid-size SUV, which will launch in Australia in June.

 

In fact, the brand has posited that it could price the new Sportage-sized fully electric SUV from less than $60,000, with aims of moving up to 10,000 units per year of the Chinese-built model.

 

That point about its sourcing is a significant one, because it’s the first Kia to be built in China, and it also uses a Chinese competitor brand’s battery technology, with BYD blade battery tech in play for the EV5 range, which will be offered with Standard Range (64kWh) and Long Range (88kWh) options.

 

The line-up will consist of the entry-level Air and Earth grades due in the middle of 2024, with a range-topping GT-Line expected in the fourth quarter.

 

Front-wheel drive is the basis for the powertrain, with a 160kW motor offered, and all-wheel drive will also be available, with those versions to have 230kW. Full details are still to be confirmed.

 

Kia Australia chief operating officer Dennis Piccoli admits that the brand has high hopes for what describes as its first ‘mainstream’ EV offering.

 

“It is our first mainstream player. It is in that segment – Medium SUV – that is the biggest segment of the market,” he said.

 

“That is a growing segment, EV sales have really started to grow there.

 

“So, it is a pivotal point for us. This is where we are really starting to get serious with the EV product that we think will resonate in the market given the configuration we have put together.

 

“We think it will go well in that private space, as well as in the fleet world.”

 

Indeed, fleet is going to be a big focus for the EV5, which the brand is aiming to offer with a five-star ANCAP rating and all the tech and spec that is required to get it for all variants in the line-up.

 

“I think there is certainly government and corporates that definitely are looking to go green,” added Mr Piccoli.

 

“And so, there is a lot of chatter out there – there is certainly some latent demand – particularly since we have a pretty solid distribution network around the country. I think it should hit the ground pretty well.

 

“Volume-wise, we think in time, we will get it up to around 10,000 per year. That is the current thinking, all going well.

 

“It is a very important product for us moving forward.”

 

In the first two months of 2024, the targeted Tesla Model Y accounted for 2456 registrations, well and truly on target to eclipse 10,000 sales for the calendar year.

 

Kia Australia general manager of product planning Roland Rivero said the car will be highly competitive in its segment, and that the brand wants to undercut the Tesla Model Y as a point of strength in the segment.

 

“It is important to achieve the sales plan, that it is pretty competitive, (and) offers good value,” he explained.

 

“It will be very well specified – it will be specified to achieve a five-star ANCAP rating and to be competitive.

 

“Importantly, with all the engineering that's been done, it is seen as a worthy competitor. We are looking to undercut the Model Y, probably in the low $60,000 range – and if we are lucky, the high $50,000 range.”

 

The fact the vehicle is sourced from China means there will be significantly better supply than the company’s other EV offerings, the Niro small SUV, EV6 crossover and the EV9 seven-seater, all of which are built in South Korea.

 

The brand has also built a new research and development centre in China, and the company’s ride and handling engineer, Graeme Gambold, said the car will be tuned to suit Australian tastes in terms of its driving dynamics.

 

“The commitment from the Chinese has been huge,” he said.

 

“I thought they might be a little bit short on some of the technology, but the vehicle dynamics knowledge and expertise are cutting edge.

 

“There is no associated quality downturn. I think that this car is better for the fact that it is made out of China as it has got all this extra attention (as opposed to a Korean-made) normal product.”

 

The Kia EV5 will not be built on the same 800-volt architecture as the EV6 and EV9 products but will instead run a 400-volt system that will limit its fast-charge capacity somewhat, with the brand claiming a 30-80 per cent recharge time of about 29 minutes.

 

The maximum DC charge rate is still unconfirmed, but it will have an onboard 11kW AC charger, making it a suitable fit for fleet operators with onsite charging facilities, and for private buyers, too.

 

The BYD battery technology employed makes use of LFP (lithium iron-phosphate) chemistry, which is known to be slightly heavier than other battery systems but offers the potential to continually charge the batteries to 100 per cent without degradation, and at a more constant rate.

 

Kia Australia CEO Damien Meredith described the EV5 as offering a huge opportunity for the brand to showcase its intent in the market, and to highlight its environmental credentials.

 

“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,” he said.

 

“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.”

 

Expect full details of the Kia EV5 line-up to be released in the coming weeks.