Kia confident of selling quality used EVs
Kwon Hyuk-ho, vice president of Kia’s domestic business division, introduces the carmaker’s launch of its certified used vehicle business during a press conference in Seoul, Wednesday. Courtesy of Kia
Kia is set to start sales of its certified used cars next month with a focus on electric vehicles (EV) by introducing what it calls an EV quality rating system, the carmaker said Wednesday.
The announcement came about a week after its sister company, Hyundai Motor, decided to tap into the lucrative used vehicle business for the first time among local carmakers here.
Kia will differentiate its sales strategy by providing its certified used EVs to the market, after Hyundai shared plans earlier to focus more on selling used vehicles with internal combustion engines.
According to data from the carmaker, the nation’s EV market has been on course for gradual growth for the past few years. As of the end of last year, EV sales accounted for a 10 percent share in the domesticl market. But sales of used EVs still fall far short of the figure, accounting for merely 0.7 percent of all used vehicle sales during the same period, Kia said.
Kia’s EV6 all-electric SUVs are displayed at its certified used vehicle sales center in Yongin, Gyeonggi Province. Courtesy of Kia
The portion of peer-to-peer trading for used EVs accounted for 64 percent of the total EVs sold as of 2021, according to data from the Ministry of Land, Infrastructure and Transport. Such consumer-to-consumer transactions come with risks in that no objective quality certification is shared during the trading process.
To guarantee the quality of used EVs sold through Kia, the company introduced the used EV quality ratings system, giving five ranks for all vehicles based on usable battery life. Batteries typically account for almost half of the price of most EVs.
Kia will use its smart EV diagnostic tool to conduct detailed analysis of battery quality in its used EVs. EVs must rank in the third band as a minimum to qualify for sale on Nov. 1 when business commences, according to the company.
Kia EV owners will also be able to sell their used vehicles to the firm via an online platform. The carmaker will purchase EVs with mileage under 100,000 kilometers and that are not more than five years old.
“Customers purchase new vehicles only after taking into consideration the estimated price when they sell them in the future,” an official from the company said. “We think the objective standard should be set to calculate the residual value of used EVs, so as for us to lead the upcoming electrified mobility era.”
The company also set a sales target of 3,000 used EVs by the end of this year. The target will rise to 15,000 next year. It also expects the market to grow gradually down the road and the figure to exceed 20,000 in 2025.