Global automakers are racing to introduce affordable electric vehicles (EVs). This strategy aims to counter the temporary stagnation in EV demand and the influx of Chinese EVs.
According to industry sources, Kia plans to host its 2025 Kia EV Day in Spain later this month. There, the brand will unveil a lineup of next-generation EVs, including the EV4, the brand’s first electric sedan; the PV5, the first model of its purpose-built vehicle (PBV) series; and the EV2, a smaller-than-EV3 concept model. Kia will also unveil its electrification strategy alongside these new models.
The most attention-grabbing model is the Concept EV2. Based on the teaser images, this compact electric SUV appears robust despite its small size. It’s expected to be priced lower than the EV3, which was introduced last year as an affordable option.
The EV2 is tailored for the European market rather than Korea and could launch as early as the second half of this year. Production is likely to take place in Europe rather than in Korea. With the EV3 selling for around €30,000, the EV2 is anticipated to be priced in the €20,000 range.
A leading European automaker, Volkswagen, has also announced plans for a budget-friendly electric vehicle.
On February 5, Volkswagen unveiled the design of its entry-level EV, priced at under € 20,000. The company plans to showcase a concept car in early March; mass production is scheduled for 2027. This model will join Volkswagen’s compact EV lineup alongside the ID.2all, set to launch in 2026 for under €25,000.
Volkswagen’s CEO Thomas Schäfer stated, “With the results of the negotiations in December, we have embarked on the largest future plan in the history of Volkswagen. We are now following an ambitious course with a view to ensuring that we reach the targets we have jointly agreed. This will be a key step in making electro-mobility attractive for everyone.”
Tesla, the global leader in pure EVs, is also entering the affordable EV market. In the first half of this year, the company plans to unveil the Model Q, a compact hatchback that will be cheaper than the Model 3. This hatchback is expected to be priced at around $30,000. Other upcoming releases include General Motors’ new Bolt EV and Renault’s Renault 4 E-Tech.
As Chinese EV manufacturers rapidly expand into global markets, established automakers are accelerating their affordable EV launches to counter this trend.
Tesla’s Model Q is seen as a direct competitor to BYD’s compact electric SUV Dolphin, which has been closely trailing Tesla.
The entry-level EV market is set to become increasingly competitive. With Chinese EV makers expanding their exports and traditional global automakers joining the race, the competition will become fiercer than ever.
An SNE Research representative noted, “Chinese EV companies are gaining a foothold in emerging markets, accelerating EV adoption in these regions. However, European and U.S. policy changes are expected to slow EV demand growth until 2025.”
The representative added, “EV manufacturers are at a critical turning point where they must focus on price competitiveness, strengthen hybrid strategies, and explore autonomous driving technologies to stay ahead.”
