Electric car news
Sales of electric vehicles in China have reached dizzying heights with 11 million units sold in 2024representing a spectacular increase of 42% compared to 2023. Faced with this exceptional growth, Kia is scoring points with its new electric compact SUV.
The booming Chinese market
The Chinese automobile market continues its electric transformation with meteoric progress. The numbers speak for themselves: more than 1.38 million electric and plug-in hybrid vehicles found buyers in December 2024 alone. This performance represents almost half of the 22.88 million private vehicles sold in the country over the year.
In this ultra-competitive context, Kia is making a remarkable breakthrough. The Korean brand has sold 248,259 vehicles in 2024an increase of 49.2% compared to the previous year. This success is mainly explained by the launch of the EV5.
The EV5, a strategic weapon against the competition
The Korean manufacturer hits hard with aggressive price positioning. The EV5 starts at 149,800 yuan (around 19,500 euros)thus positioning itself as a credible alternative to local manufacturers like BYD and its Seagull model offered at less than 10,000 euros.
The technical characteristics of the EV5 impress:
- Standard range: 530 kilometers (CLTC cycle)
- Long range version: 720 kilometers with 88.1 kWh battery
- New GT Line finish added in November 2024
An ambitious export strategy
The success of the EV5 is not limited to the Chinese market. Weda Kia, the manufacturer’s local joint venture, is deploying a massive export strategy. The vehicle is already marketed in 76 paysincluding Australia, New Zealand, Brazil, Saudi Arabia and several countries in Southeast Asia.
-The objectives are clearly defined:
- Extension to 80 pays in the coming months
- Objective of 180,000 annual exports
A promising return to profitability
Kia’s strategy is paying off financially. The Chinese joint venture returned to profit in the third quarter of 2024, a first in seven years. Monthly sales regularly exceed 20,000 units since June 2024, demonstrating a lasting stabilization of activity.
This commercial success takes place in a context where other historic manufacturers are struggling to maintain their position. Volkswagen and Toyota face major difficulties in competing with local brands, while Kia demonstrates that a strategy combining advanced technology and competitive pricing can be a winner, even in the world’s most competitive market.
Written by François Zhang-Ming
I have always shown a keen interest in science and technology from a very young age. I have a dual culture, Chinese through my mother and French through my father but also through my studies, which allows me to be very familiar with the technological innovations of the Far East.
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