Kia Australia has indicated that the new, entry-level EV2 electric crossover is unlikely to be sold locally. The primary obstacle is cost: production in Slovakia, combined with high shipping expenses, would make the EV2 too expensive to compete effectively in the Australian market.
Pricing and Market Positioning
According to Roland Rivero, Kia Australia’s general manager for product planning, the EV2 would struggle to undercut the price of the already-available Korean-built EV3. The company prioritizes value for money, especially as competitors like BYD introduce lower-priced options (such as the Atto 2) into the market. To justify its existence, any new model must either be a flagship product or competitively priced.
Production and Import Challenges
While import tariffs don’t apply to EVs from Europe, the higher production costs at Kia’s Slovakian factory and the longer shipping distance to Australia present significant hurdles. The EV2 is expected to start around £25,000 ($49,021 AUD) in the UK, while the EV3 begins at £33,000 ($64,708 AUD). However, the EV3 already costs $47,600 in Australia, suggesting the EV2 would face an uphill battle to be priced lower without losing appeal.
EV2 Specs and Design
The EV2, unveiled at the Brussels motor show, is Kia’s smallest and most affordable European EV. Its compact dimensions (4060mm long, 1800mm wide) are smaller than Kia’s Stonic crossover, offering 403L of cargo space with its sliding rear seats. The vehicle will be available with 42.2kWh or 61.0kWh batteries, providing a WLTP range of up to 448km.
The Standard Range model features a 107kW front-mounted electric motor, while the Long Range has a slightly less powerful 100kW motor. Acceleration from 0 to 100km/h ranges from 8.6 to 9.5 seconds.
The EV2’s viability hinges on Kia Australia’s ability to secure a price point that’s both competitive and profitable, given the current market dynamics.
The decision reflects the pressures facing automakers in Australia, where high import costs and competitive pricing are key determinants of success. Without a clear path to affordability, the EV2 will likely remain unavailable to Australian buyers.
