Kia Targets Sub-€25K Electric City Car as EV Market Heats Up

Kia Targets Sub-€25K Electric City Car as EV Market Heats Up

As the auto industry accelerates toward electrification, Kia is not just keeping pace — it’s setting a course for an ambitious electric future. By the end of this decade, the South Korean automaker is poised to introduce a fresh generation of electric vehicles, software-defined architectures, and even a return to simplicity in design. The company’s roadmap blends affordability, intelligence, and versatility — and it’s aimed squarely at both developed EV markets and underserved global regions.

A New Electric Chapter: From Flagship to Entry-Level

Kia’s current electric lineup — the EV3, EV6, and EV9 — will soon be joined by the EV4 and EV5 this year, with the EV2 landing in 2026. But the real story lies just beyond the horizon. The brand is working on a new entry-level EV, priced below €25,000, aimed at consumers looking for affordable electric mobility. This sub-EV2 model could mark a pivotal moment for the EV market, offering a real alternative to internal combustion without sacrificing quality or style.

Interestingly, Kia’s CEO Ho Sung Song sees this model not as an afterthought, but as an integral part of the company’s future. Although the venerable Picanto city car remains strong in sales — especially after its 2023 facelift — its eventual successor will almost certainly be electric. Whether the two will overlap in showrooms depends on evolving CO₂ regulations in Europe.

The inspiration behind this new breed of Kia? Simplicity. Design boss Karim Habib cites Japanese retailer Muji as a creative muse — a brand that values utility, minimalism, and adaptability. Kia is exploring how to build vehicles that are stripped to their essential form, but remain highly customizable. That mindset could be the key to delivering desirable, affordable EVs to a global market.

Software-Defined Vehicles: The EV Brain Revolution

But Kia’s ambitions stretch well beyond creating more EVs — the company is engineering smarter ones.

Kia is embracing software-defined vehicle (SDV) architecture, a systems-focused evolution that replaces fragmented electronic subsystems with centralized computing. This unified brain allows for streamlined updates, reduced development costs, and the flexibility to offer personalized digital experiences across the model range.

Development of the SDV platform has been underway for over three years, and the first tangible sign of progress may come as early as next year in the form of the SDV Pace Car concept — a glimpse at the brand’s digital future. The next-gen EV6 and EV9, due before 2030, will be among the first models to adopt the 800V SDV architecture.

“Because we are decoupling hardware and software, we can be more flexible making different kinds of vehicles based on the same platform,” said Song. It’s a move that signals not just smarter cars, but faster and cheaper development cycles — a win for both Kia and its customers.

Beyond the Car: Vans, Pick-Ups, and Range-Extenders

Kia’s electrification strategy isn’t confined to passenger vehicles. The brand is entering new territory with a dedicated PBV (Platform Beyond Vehicle) lineup — think electric vans and pickup trucks. The PV5 will lead the charge, followed by the larger PV7 in 2027 and PV9 in 2029.

To support larger, heavier vehicles, Kia is also exploring extended-range electric vehicles (EREVs), or range-extenders — a hybridized system that uses a combustion engine to recharge the battery when needed. These are particularly promising in markets where pure EVs remain impractical due to infrastructure limitations.

“The final destination in Europe is EVs,” said Song, “but if we look at worldwide demand we should have alternative powertrains, like hybrids, plug-in hybrids and EREVs.” This reflects Kia’s pragmatic approach — leading with EVs where possible, while offering flexibility where needed.

Design Renaissance: Simplicity Meets Innovation

Despite rapid innovation, Kia isn’t forgetting the emotional appeal of car design. Song acknowledged that while the current design philosophy has served the brand well for five years, it’s time to evolve. Habib confirmed that fresh concept cars are coming, and while details remain under wraps, the emphasis is clear: stay bold, stay fresh.

Kia is also investing in in-vehicle AI assistants — developed in partnership with tech giants like Samsung — to offer users more intuitive and connected experiences. Customers increasingly expect their vehicles to mirror the digital ecosystems they live in, and Kia intends to meet them there.

The Road Ahead

Kia’s vision is both grounded and forward-looking. It recognizes the real-world complexity of a global market while embracing a fully electric, software-integrated future. Whether it’s delivering an EV city car under €25,000, pioneering intelligent vehicle architecture, or expanding into commercial electrification, the brand is clearly not content with standing still.

As we look toward 2030, it’s clear that Kia doesn’t just want to be part of the EV era — it wants to define it.

Source: Kia