Hyundai Motor and Kia Corp. are looking to ramp up their market shares by introducing more than five new electric vehicle models this year. The electric vehicle market, which grew rapidly, has slowed down somewhat, but the two automakers are expediting their electrification transition with the new models.
According to industry sources on Feb. 12, Hyundai and Kia will launch more than five new electric vehicle models this year. By brand, Hyundai will introduce three or more new electric vehicle models and Kia two or more. They will range from small to large ones.
Hyundai is expected to release the IONIQ 7, a partially modified version of the IONIQ 5, and the Casper Electric. The IONIQ 7 is Hyundai’s first large electric sports utility vehicle (SUV) and is similar to the Kia EV9 in size. Hyundai has been building an electrification line at its Asan plant in Korea for about two months to produce the IONIQ 7. Volume production of the IONIQ 7 is scheduled for the second half of this year.
Casper’s electric vehicle model, the Casper Electric, which has attracted much attention as a light SUV, will also go on sales in the second half of the year. The Casper Electric will be outsourced from Gwangju Global Motors (GGM) and sold by Hyundai Motor. GGM has already begun tentative production. The Casper Electric is characterized by a 250-millimeter-longer wheelbase than the internal combustion engine model to accommodate large-capacity batteries. Based on this, it aims to be certified for a range of up to 350 kilometers or more per charge. While the internal combustion engine model has been sold only in the Korean market, Hyundai will export the Casper Electric to overseas markets such as the United States and Japan. Hyundai Motor Group’s first E-GMP-based electric vehicle, the IONIQ 5, which was first released in 2021, will also be partially revised. It is expected to be improved in terms of interior and exterior design and other commercial value.
Kia will introduce its new electric vehicle, the EV3, in June. The EV3 will be Kia’s small electric SUV. By using subsidies, consumers will be able to buy this model at 30 million won (US$22,592). One of the biggest drawbacks of electric vehicles is that they are still more expensive than their comparable internal combustion engine-powered models. For example, the base price of the Hyundai Palisade is 38.96 million won, but the EV9, which is similar in size, costs 73.37 million won. Due to its high price, the EV9 has been selling poorly in Korea, and Kia even offered a 20 million won discount for the EV9. In response, Kia plans to reverse its EV sales decline by developing a new small electric SUV, the EV3, at a lower price. Moreover, Kia is expected to start selling a partially changed model of the EV6 which was launched after the IONIQ 5 in 2021 as early as the first half of this year.
Although the growth rate of electric vehicles is slowing down somewhat in both the Korean and overseas markets, Hyundai and Kia are seemingly expanding the launch of new electric vehicle models this year to enjoy the effects of preempting the EV market.