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2024 Kia EV5 to undercut Tesla Model Y, Toyota bZ4X and Subaru Solterra on price when the mid-size electric SUV arrives in June

Kia’s fully electric EV5 mid-size SUV could become one of the most popular cars for the brand, with the company’s senior executives telling CarsGuide they have priced the Tesla Model Y rival so that everyday Aussies can have the chance to own an electric SUV when it arrives this June.

At a special walkaround of a pre-production version of the EV5, CarsGuide asked Kia Australia General Manager of Product Planning Roland Rivero if the upcoming electric SUV could wear a price tag starting close to $57,000 for the entry grade and then head upwards to about $70,000 for the top-of-the-range version. This would price it below the Kia EV6 while also undercutting its closest rival the Tesla Model Y by almost $10,000.

“What you’re speculating is a fair speculation,” Rivero said. 

“We’re serious about EV5 and it’s important that we are competitive in that medium space for the pragmatic buyers.”

With a starting price of less than $60,000, the EV5 could well become the first relatively affordable mid-sized electric SUV from an established brand in Australia. The Tesla Model Y starts at $65,400, while Toyota’s bZ4X begins at $66,000 and its Subaru Solterra twin is $69,990.

The EV5 will be made in two locations: in Korea and China. The Korean plant will supply Europe, the United States, Canada, South America and the Middle East. The factory in China will supply Australia and Asia. 

Kia Chief Operating Officer Dennis Piccoli said sourcing cars from the Chinese factory will mean Australia won’t have to compete with Europe as it has done so in the past, ensuring good supply of a car which could become a best-selling model for the brand in Australia.

“Being made in China will give us surety of supply,” Piccoli said. 

“It’s an enormous opportunity for us. It’s probably one of the most important cars for us in all reality. We’re at the point of inflection where we really have to start dialling up our EV volume to the wider market.”

The EV5 will compete on price with the hybrid variant Sportage.

“We think we can sell up to 10,000 units a year.”

Kia’s biggest-selling model in Australia is the Sportage with 15,747 sales last year. The Sportage is available with internal-combustion engines or a hybrid system, but is not offered with fully electric powertrains.

The EV5 won’t be able to compete on price with the entry-level petrol-powered Sportage, which starts at $32,995, but with the hybrid variant costing $55,420, a fully electric EV5 for less than $5000 more could be very enticing to regular buyers. 

With the Aussie car landscape pivoting quickly to EVs Kia Australia’s Chief Executive Office, Damien Meredith, said it was crucial that not only does the car and price have to be right, but the supply needs to be good, too.

“Kia Australia is confident the EV5 will suit the needs of many new car buyers who now, more than ever, are considering the move into a full battery electric vehicle,” Meredith said.

“Sourcing Australia’s stock from the China factory allows us to launch earlier and secure supply of up to 850 per month, which is needed to target mainstream appeal.”

Richard Berry
Senior Journalist
Richard had wanted to be an astrophysicist since he was a small child. He was so determined that he made it through two years of a physics degree, despite zero mathematical ability. Unable to build a laser in an exam and failing to solve the theoretical challenge of keeping a satellite in orbit, his professor noted the success Richard was enjoying in the drama and writing courses he had been doing on the side. Even though Richard couldn’t see how a degree in story-telling and pretending would ever get him a job, he completed one anyway. Richard has since been a best-selling author and a journalist for 20 years, writing about science, music, finance, cars, TV, art, film, cars, theatre, architecture, food, and cars. He also really likes cars, and has owned an HQ ute, Citroen 2CV, XW Falcon, CV8 Monaro and currently, a 1951 Ford Tudor. A husband and dad, Richard’s hobbies also include astronomy.
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