Flagship Floundering
Kia’s flagship model, the EV9, is struggling in the domestic market just three months after its launch.
According to industry sources on Sept. 7, Kia announced on Sept. 1 that during the recent period it sold 408 units of the EV9 in the domestic market, a decline of over 67% compared to July. In its official debut month of June, 1,334 units were sold in Korea, followed by 1,251 units in July.
Industry insiders believe the EV9’s disappointing initial sales are due to high prices, early quality issues, and dwindling electric car popularity.
The EV9, the first large electric sports utility vehicle (SUV) in Korea, is priced between 73.37 million won and 81.69 million won, depending on options. With all added options, the price can reach 100 million won.
However, with electric vehicle subsidies, the actual purchase price drops to the 60-70 million won range. But with electric car manufacturers quickly lowering their prices, the 60-70 million won price is still considered a high barrier to entry.
Last month, Tesla introduced its China-made Model Y in Korea, which is half the price of its predecessors at a 20 million won discount. With subsidies, this vehicle’s price can be reduced to the mid-40 million won range.
Furthermore, premium electric car sellers such as Mercedes, BMW, and Audi are also offering around 20 million won discounts, making it harder for the EV9 to stand out.
According to industry sources, the Mercedes EQS 450 4matic SUV, originally priced at 150.41 million won, is now available for about a 10% discount, bringing it down to 138.69 million won. The BMW iX3 M Sport is also available with a 16.70 million won discount, and the Audi e-tron Sportback 55 Quattro is selling at 102.20 million won after a 22 million won discount.
Early quality issues with the EV9 also contributed to sluggish sales. According to the Ministry of Land, Infrastructure, and Transport, the EV9 had been subjected to free repairs for issues like charging control errors, transmission control unit P gear recognition errors, lamp control signal processing errors, and missing diagnostic data within the vehicle control unit.
Moreover, the popularity of electric cars in Korea has considerably decreased. Last month, sales of the EV6 stood at 948 units, a significant drop from the average monthly sales of around 2,500 units between March and May.
Hyundai’s electric car sales in August were 3,476 units, down 30% from last year. Previously, in July, they sold 5,852 units, reflecting an 8.7% decrease compared to the same period the previous year.