Kia unveils compact electric SUV EV3 for the first time
Resolving the ‘high price’ barrier to electric car purchase
Breaking through the stigma and moving towards ‘mass popularization’ of electric cars
Maximum range per single charge 501km… Full charge in 31 minutes,
Kia CEO Song Ho-sung answering questions from reporters at the EV3 online media conference held on the 21st. ⓒEV3 Online Media Conference Screen Capture, ‘[Dailian Reporter Pyun Eun-ji] ‘,
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, “The early majority customers are practical, price-sensitive, analyze various costs, and are an analytical customer base. In order to target them, I think we need to provide significant solutions in terms of price and charging infrastructure, two obstacles in the electrification of electric cars.”,
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, ‘Kia CEO Song Ho-sung said this at the EV3 unveiling event held online for the media on the 21st. It directly addressed the complaints of consumers regarding pricing, driving range, and charging issues that have been following all electric cars released by various companies including Kia.’,
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, ‘While it may be difficult for Kia alone to make dramatic improvements in the short term in terms of charging infrastructure, they have set an attractive price range in the mid-30-million-won range. In addition, they presented a goal to grow EV3 into a high-volume model selling up to 30,000 units annually by adding outstanding design, performance, and marketability.’,
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, “The global premiere video of EV3 released on that day also depicted the practical concerns of consumers regarding electric cars. The video showcased concerns such as ‘Can I go that far? I need a smaller car. Range anxiety. I need ample space.’ followed by a statement that EV3 will address these issues, ending with the video.”,
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, “Kia’s aggressive release of dedicated electric vehicles based on E-GMP such as EV6 and EV9 had not addressed a vehicle that could solve the ‘chasum (mass popularity transition)’ where there was no vehicle that could enable mass popularity. While EV6 and EV9 have high marketability, their prices were relatively higher compared to equivalent internal combustion engine vehicles.”,
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, “CEO Song acknowledged the high prices of EV6 and EV9 that have been released so far, while finding the charm of EV3 in contrast. It is the aggressive ‘price competitiveness’ in the mid-30 million-won range. They have set the starting price of EV3 at around 35,000 dollars in the United States and the mid-30 million won range in Korea.”,
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, ‘Despite the low price, they have maximized the range that can be achieved with a small body. It was predicted that LFP (lithium iron phosphate) batteries would be used to lower the price, but Kia equipped NCM (nickel-cobalt-manganese) batteries to increase the driving range. This decision was based on the judgment that the psychological threshold for consumers’ expectations from an electric car is around 500 km.’,
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, ‘EV3 operates in two models: a long-range model equipped with an 81.4kWh battery and a standard model equipped with a 58.3kWh battery. The long-range model can travel up to 501km per single charge. The charging speed is 31 minutes from 10% to 80% with a 350kW rapid charger.’,
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, ‘A Kia official stated, “Realistically, there were many limitations in the popular electric car market. There were models that were too big or the price range was too high. If you wanted a smaller electric car, you had to compromise on space or driving range.” and explained, “This was the starting point for EV3. It had to solve fundamental complaints and also incorporate innovative technologies beyond the class.”‘,
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EV3 teaser image ⓒKia, ‘In the automotive industry, cost reduction has been achieved by excluding premium options from low-priced models or using inexpensive LFP batteries for electric vehicles, but Kia’s EV3 completely breaks away from that tradition. Furthermore, the design and innovative technologies applied to the flagship model EV9 have also been incorporated into EV3.’,
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, “The need to target the demanding ‘early majority’ (those who are early adopters of new products) who are crucial for transitioning electric cars from the early adopter phase into mass popularization has increased.”,
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, ‘The early majority belong to the group that adopts new products early but differs from early adopters in that they seek cost-effective and efficient products due to lower economic capacity. In reality, to initiate mass popularization, one must catch the eye of the early majority.’,
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, ‘CEO Song stated, “I believe the price range expected by the early majority. When looking at the psychological threshold of customers who want to use electric cars, I think the driving range should be between 450km and 500km. Whether it is a mass-market or premium model, it is the same,” and added, “I think EV will serve as the starting point for targeting the early majority. Going forward, models viewed as mass-market such as EV4 and EV5 will also be launched targeting such customers.”‘,
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, ‘As Kia is confident that EV3 is competitive in terms of price and driving range, they plan to provide solutions to resolve charging issues for the mass popularization of EV3. Their strategy is to focus on long driving ranges, fast charging speeds, and entertainment available during charging to alleviate anxiety related to charging.’,
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, ‘Ryu Chang-seung, head of Kia Customer Experience Division, stated, “EV3 is an important vehicle for mass popularization. We will provide solutions to resolve the most important obstacle, the charging issue. We will offer experiences that alleviate charging anxiety through features such as a nearly 500km driving range, charging in 31 minutes from 10% to 80%, and entertainment experiences while driving, parking, or stopping.”‘,
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, “As a model declared for ‘mass popularization,’ Kia has set ambitious sales targets. They aim to sell 2,500 to 3,000 units per month in the domestic market and 25,000 to 30,000 units annually. Considering that EV6 sold 2,495 units and EV9 sold 930 units from January to April this year, these figures are quite aggressive.”,
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, ‘While electric car sales are slowing down and hybrid car popularity is rising, Kia sees no issue in expanding the sales of EV3. Consumers who prefer gasoline or diesel are choosing hybrid cars, and this trend does not hinder electric car sales.’,
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, ‘CEO Song stated, “I do not think the demand for electric cars is shifting towards hybrids. We plan to respond by introducing up to 9 new hybrid models by 2028.” He explained, “Electric cars will create demand with mass-market models and respond to customers\’ needs to grow.”‘,
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, ‘Overall, while the translation may not be perfect, the summary showcases Kia\’s efforts to address the barriers hindering the mass popularization of electric cars through the introduction of the EV3 model and its innovative features and competitive pricing strategy.