Azernews.Az

by Alimat Aliyeva

Kia on Thursday announced it will lower prices on several electric vehicle (EV) models in South Korea, responding to intensified competition from Tesla and other foreign automakers targeting price-sensitive buyers, Azernews reports, citing Korean media.

The Hyundai Motor affiliate said it will reduce the price of its compact electric SUV, the EV5 Long Range, by 2.8 million won (about $1,900) and cut prices for the EV6 by 3 million won.

After the reductions, the EV5 Long Range will start at 45.75 million won for the entry-level Air trim. With central and local government subsidies for EV adoption applied, the effective purchase price in Seoul is expected to fall to around 37.28 million won.

For the EV6, prices will begin at 43.6 million won for the standard model and 47.6 million won for the Long Range version. After subsidies, the effective prices are projected to drop to approximately 35.79 million won and 38.89 million won, respectively.

Kia also highlighted the newly launched EV5 Standard model, which will start at 43.1 million won for the base trim. With subsidies, the effective purchase price is expected to fall to the mid-34 million won range.

In addition to price cuts, Kia is boosting financing incentives for the EV3 and EV4. Customers purchasing these models through installment plans with equal principal and interest payments can benefit from interest rates as low as 0.8 percent for 48 months and 1.1 percent for 60 months—reductions of up to 3.3 percentage points from previous rates.

Beyond pricing and financing, Kia plans to expand its EV service network by deploying more EV-specialized technicians nationwide and increasing the number of locations capable of performing partial repairs on high-voltage batteries.

To support resale values, the company will introduce a comprehensive quality grading system for used EVs and issue performance inspection certificates. Customers selling a Kia EV and purchasing a new electric model will also be eligible for discounts of up to 1 million won.

"These measures are designed to reduce the cost of EV ownership and improve accessibility, helping expand the domestic EV market," a Kia spokesperson said.

Industry analysts note that Kia’s aggressive pricing and support measures reflect growing pressure on South Korean automakers to maintain market share as foreign EV brands intensify discounting and local competitors ramp up offerings.