Kia is growing in China as most foreign automakers are rapidly losing market share. Foreign automakers such as 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 results, with sales of the product in China surpassing 20,000 for the third consecutive month in August.
Kia officially unveiled the EV5 at the Chengdu Auto Show last August, saying it “brings a new era of electric mobility to the compact SUV segment.”
The EV5 shares much of the design and technology 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 almost the same size as 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 reaches 329 miles (530 km) CLTC driving range. The long-range model (88.1 kWh battery) is limited to a range of up to 447 kilometers (720 km).
Kia launched the EV5 in China last November, starting at $21,000 (149,800 yuan). Pricing undercuts the Model Y, which starts at around $35,000 (249,900 yuan).
According to Jiangsu Yueda Kia who works with Kia of China, the EV5 is already powerful.
The company announced that it sold 22,498 vehicles in August, an increase of 36% compared to last year. August was Kia's best month so far in 2024 and its third consecutive month to exceed 20,000 in sales of the brand.
The Kia EV5 is moving up the sales chain in China
“By continuing to sell more than 20,000 units per month, Kia has shown that it is on the right track in China,” said Kim Sung-rae, a market analyst at Hanwha Investment & Securities.
Kia sales in China, including exports, reached 154,243 in the first eight months of 2024, a 61% jump from last year.
In accordance with TheKoreaHeraldKia is now the best-selling brand among joint car manufacturers in China.
Kia expects to sell more than 230,000 vehicles by the end of 2024 at their current pace. If Kia reaches its milestone, it will be the first time to surpass the 200,000 sales mark since 2020.
The EV5 has become an important factor as Kia revives sales in China. Kia sold nearly 6,000 EV5 models in China through July.
Kia's exports to China are also growing. As of August, its Yancheng plant exported more than 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 subsidiary SAIC is considering closing a factory due to overcapacity.
Kia's new low-cost EV5 helps the company compete with domestic automakers such as BYD, which is the market leader. BYD's Seagull EV, which starts at less than $10,000 (69,800 yuan), was the best-selling vehicle in China in August, with nearly 41,000 models sold.
Kia is launching the EV5 in new markets such as Australia and New Zealand later this year, which is likely to boost sales.
China is not the only market where Kia sales are booming. Last month, Kia sold more cars in the US than ever before. With more than 75,200 vehicles sold in August, Kia topped its US sales record for the third month in a row.
Kia's first three-row electric SUV, the EV9, is helping boost growth in the US. As of 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 around the world, Kia will be a brand to watch over the next few quarters as it takes on the market leaders.
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