Kia has announced that its new compact electric vehicle, the EV5, will be launched exclusively in Canada, bypassing the United States market. This strategic decision follows the latest tariff policies introduced by the U.S. government.
Why the EV5 Won’t Be Available in the U.S.
According to international reports on January 31 (local time), the Biden administration has imposed high tariffs on products manufactured in China, Mexico, and Canada. Since the EV5 is produced in China and Singapore, Kia has altered its sales strategy to avoid heavy import taxes.
EV5: A Compact SUV with a Bold Design
The Kia EV5 is similar in size to the Toyota RAV4, and its design has been described as a “smaller version of the EV9.” It is built on Hyundai Motor Group’s E-GMP platform but differs from the EV6, which features an 800V architecture and rear-wheel drive (RWD) or all-wheel drive (AWD). Instead, the EV5 utilizes a more affordable 400V platform, offering front-wheel drive (FWD) and AWD options.
Performance and Expected Pricing
The EV5 boasts a maximum driving range of 300 miles (482 km) per charge. In terms of pricing, it is expected to be available in the range of $40,000 to $50,000 (approximately ₩58 million to ₩73 million).
Strong Sales Performance in Asia
The EV5 has already been well-received in various Asian markets, particularly in China, where it has played a crucial role in Kia’s resurgence, contributing to over 200,000 units sold. Kia China has returned to profitability for the first time in seven years.
U.S. Consumers Disappointed by EV5’s Absence
Many U.S. consumers have expressed disappointment over the EV5’s unavailability in their market. Industry analysts believe that the EV5’s competitive price and modern, boxy SUV design would attract numerous EV buyers, particularly first-time electric car owners. Additionally, the EV5 serves as an ideal alternative for those who find the EV9 too expensive or do not require a third-row seat.
Kia to Showcase EV5 at Canadian International Auto Show
Kia plans to unveil the EV5 to the public at the Canadian International Auto Show, set to take place from February 14. This will allow Canadian consumers to experience the vehicle firsthand before its official release.
Conclusion
Kia’s decision to exclude the U.S. from the EV5 launch reflects the shifting landscape of global trade policies and manufacturing strategies. While U.S. customers may miss out, Canadian buyers will benefit from exclusive access to this affordable, stylish, and high-performance electric SUV.
Stay tuned for more updates on Kia’s EV lineup and global expansion plans!
News Source: GPKorea