Kia has found its answer to low-cost Chinese EV makers like BYD

Kia’s compact EV5 electric SUV is making a statement in the world’s largest EV market. With sales surging nearly 50% last year, the EV5 helped Kia sell over 200,000 vehicles in China for the first time in four years. The impressive growth ranked first among joint venture brands in the country.

How is Kia keeping up with the EV sales surge in China?

China has emerged as a global force in the auto industry as electric sales continue to surge. With another 1.38 million NEVs (EVs and PHEVs) sold in December, China crossed the 1 million mark for the fifth straight month.

According to the CPCA (via CnEVPost), China sold nearly 11 million new energy vehicles in 2024, an increase of 42% from 2023. That’s almost half the 22.88 million total retail passenger vehicles sold in the country last year.

Domestic EV makers like BYD are squeezing legacy automakers out of the market with ultra-low-cost EVs, like its Seagull, which starts at under $10,000 in China.

With rivals like Volkswagen and Toyota struggling to survive, Kia is taking on the competition head-on. After launching its new compact electric SUV in China in late 2023, starting at around $20,000, the EV5 pushed Kia to its best sales year since 2020.

According to Korea’s Newsis, Kia is seeing a full-on recovery in China thanks to its newest EV. Kia’s Chinese joint venture, Weda Kia, announced sales in China reached 248,259 in 2024, up 49.2% from the prior year.

Exports will ramp up in 2025

This marks the first time Kia’s sales in China crossed the 200,000 mark since 2020. The company said, “Last year’s sales growth rate ranked first among joint venture brands.”

After selling 26,550 vehicles in China last June, Kia sold over 20,000 units every month through the end of 2024. An industry insider said, “Kia’s business in China seems to have entered a normal phase.”

Kia’s joint venture turned its first profit in seven years in the third quarter of 2024. With new models rolling out, profits are expected to gradually increase.

A big part of the joint venture brand’s growth was the new EV5. In November, Kia expanded the EV5 lineup with a sporty new GT Line trim. The base EV5 starts at just 149,800 yuan, or around $21,000, with up to 329 miles (530 km) CLTC range. Powered by a larger (88.1 kWh) battery, the Long Range model is rated with up to 447 miles (720 km) range in China.

Kia plans for even more growth as exports ramp up. The company has been accelerating exports from China since last year, and so far, it seems to be working.

Weda Kia exports to 76 countries, including Australia, New Zealand, Brazil, Saudi Arabia, and Southeast Asia. The goal is to reach 80 countries with 180,000 annual exports.

Source: Newsis