Hyundai and Kia bet on cheap electric cars

Hyundai Motor sold a total of 16,842 electric vehicles domestically in the January-June period, down 54.7% from the same period last year, according to industry data.

In June 2024 alone, sales fell 36.4% year-on-year to 3,625 units.

Kia sold a total of 16,537 vehicles in the January-June period, down 39.9% year-on-year. In terms of models, sales of the EV Niro fell sharply by 80.4%, while sales of the EV6 fell 50% to 5,305 vehicles.

Hyundai Motor Group's weak domestic electric vehicle sales are due to falling demand amid a weakening economy and also reflect the so-called EV adoption gap in the country that is affecting the market.

In that situation, Hyundai Motor and Kia are aiming for recovery by launching new electric models aimed at widespread adoption with operating ranges comparable to models using internal combustion engines.

Pre-orders for Kia's new small electric SUV, the EV3, have surpassed 10,000 units, according to industry sources.

Kia says the price of the new all-battery SUV will range from $35,000 to $50,000 depending on the market.

In the domestic market, the base version of the EV3 will start at around 35 million won ($26,000) with government subsidies.

The EV3 is powered by Hyundai Motor Group's dedicated EV platform called E-GMP and a ternary lithium battery, or nickel-cobalt-manganese (NCM). The long-range version offers a driving range of 501 km on a single charge.

Hyundai Motor also began taking pre-orders for its new Casper Electric mini SUV in South Korea this week.

The company has also opened pre-orders for the long-range "Inspiration" version of the Casper Electric, which debuted at the Busan International Mobile Show last month.

The Casper Electric is an electrified version of the petrol-powered Casper first introduced in 2021, but with a comprehensive suite of improvements. It also features a 49kWh NCM battery, giving it a range of up to 315km on a single charge.

Hyundai expects consumers to be able to buy the Casper Electric Inspiration version for 20-23 million won with electric vehicle subsidies from the central and local governments.

Auto industry observers are closely watching the market and consumer response to both models, seeing them as potential barometers for whether domestic automakers can overcome the growth slowdown in widespread electric vehicle adoption.