Kia has recently introduced its luxury EV9 electric SUV, which is in direct competition with popular models like the Tesla Model X and Mercedes EQS. However, some experts are questioning whether it would have been more fitting for Hyundai’s Genesis brand to launch such a high-end vehicle. As a result of slowing EV sales in Europe, manufacturers are pressuring the EU to relax regulations that mandate the end of new internal combustion engine vehicle sales by 2035.
Kia has made significant strides in the European market since its launch in the early 1990s, gradually outperforming competitors like Renault, Peugeot, and Volkswagen. While the brand has found success in the electric vehicle market with models like the EV6, it has also maintained a range of ICE, hybrid, and plug-in hybrid options. However, the pricing and competition for the EV9, which starts at €73,000 in France, present a challenge in positioning the vehicle as a premium option along with the likes of Tesla and BMW.
Despite Kia’s efforts to position itself in the premium market, European manufacturers are facing challenges as EV sales have plateaued and demand remains weak. Calls to reconsider the 2035 mandate banning most new ICE vehicles are growing as companies struggle to meet regulatory targets. Stellantis CEO Carlos Tavares has warned that if affordable EV options are not available, there could be backlash from average salary earners, leading to potential social crises. As a result, some automakers are reconsidering their focus on pure electric cars and reinvesting in ICE development.
European Autos Market Analyst Matthias Schmidt believes the EV9 could perform well in both the U.S. and European markets by satisfying tax regulations related to CO2 emissions and environmental targets. While Kia has made significant progress in the European EV market, currently holding a 4% market share, challenges lie ahead as the industry grapples with the transition to zero emissions. Ultimately, achieving the 2035 mandate may prove to be more difficult than anticipated, with potential social and economic repercussions if the market is not ready for a complete switch to EVs.
As the industry navigates the transition to electric vehicles, maintaining a balance between ICE, hybrids, and EVs is crucial according to Kia Europe President and CEO Marc Hedrich. With the uncertainty surrounding the 2035 mandate and the readiness of the market for EVs, carmakers like Kia must carefully manage the transition period to ensure a sustainable future. However, concerns remain about the industry’s ability to meet ambitious targets and the potential implications of an accelerated shift away from ICE vehicles.
