Kia Narrows Europe Price Gap to Chinese EVs to 15-20%

Kia Corporation has narrowed the price gap between its vehicles and those of Chinese competitors in Europe to 15-20 percent this year, down from 20-25 percent previously, as the South Korean automaker intensifies efforts to counter the rapid expansion of low-cost electric vehicle makers like BYD.

The move comes amid surging demand for Chinese EVs across the continent. Vehicle registrations for BYD in Europe jumped nearly 150 percent in March, reaching over 37,500 units and far exceeding the overall market growth of 11 percent as well as Kia's roughly 6 percent increase. Executives at Kia acknowledged during a recent earnings call that Chinese brands such as BYD, Chery, Great Wall, Geely, and Leapmotor are gaining market share in several European countries faster than anticipated, driven by aggressively priced electric models.

Kia chief executive Song Hosung stated that the company plans to leverage its profitability by offering more incentives to attract buyers. "Chinese companies launched an aggressive push with low-priced EV models, and in some European countries their market share has been rising much faster than we had anticipated," Song said. Despite a quarterly profit...