Hyundai Motor Group’s smaller affiliate Kia has ramped up exports of the EV3, its small electrified SUV, to Europe by capitalizing on the region’s drive to raise tariffs on China-made EVs.
According to industry sources Sunday, Kia exported 24,704 units of the EV3 to Europe from January to November this year, with only around 20 units sold in the first two quarters. Following the model's official launch in key European markets in August, export sales surged to 24,673 units, more than double that of domestic sales.
“Although (Kia’s) electric car sales have fallen short of the sales target, EV3 sales are exceeding expectations driven by positive market responses,” said Joo Woo-jung, chief financial officer at Kia, during the third quarter conference call on Oct. 25.
Industry insiders say Kia has boosted EV exports with the aim of aggressively strengthening market penetration, anticipating that Chinese competitors may lose ground in the second-largest EV market.
The EU increased tariffs on Chinese-imported battery-powered cars from 10 percent to between 17.8 percent and 45.3 percent starting Oct. 30, intending to slow the influx of low-cost EVs backed by what it says are unfair governmental subsidies. After the tariff took effect, the market share of Chinese EVs in the EU hit 7.4 percent in November, the lowest since April, according to media reports.
Kia said the EV3 was designed as a global strategic model, reflecting the needs of global consumers, particularly in Europe, one of the most competitive compact SUV markets.
Earlier, the carmaker set its annual sales target at 60,000 units, or 5,000 units monthly.
“The company has not yet met the monthly target, however, it will likely boost sales from its EV manufacturing plant in Gwangmyeong early next year,” said a source familiar with the matter who wished to remain anonymous.
Kia is slated to launch the smaller EV2 compact SUV in Europe next year. Its length is projected to be approximately 4,000 millimeters, longer than Hyundai Motor Company’s Casper Electric SUV and shorter than the Jeep Avenger EV -- both of which are well received in the region.
hyejin2@heraldcorp.com
