Low-priced EVs to take center stage in 2024

Kia Concept EV3 is unveiled during the Kia press conference at Automobility LA, the media preview day for the LA Auto Show, on Nov. 16 in Los Angeles, California. AFP-Yonhap

Automakers here and abroad are realigning their strategies to focus on low-priced electric vehicles (EV) in 2024, hoping to rev up automobile sales in the face of falling demand triggered by the global economic slowdown.

Kia is one of the front-runners jumping on the bandwagon with the planned launches of EV3 and EV4 – two models the automaker is set to launch in 2024 at what is considered to be a reasonable price range of $35,000 (45 million won) to $50,000.

The carmaker has so far focused on sales of mid- to large-sized EVs, but decided to diversify its EV lineups with lower-priced models, reflecting lingering financial burdens for customers regarding the pricing of most EVs. Chances are the price for EV3 falls to a range of 30 million won and 40 million won, once customers receive subsidies for the purchase of omissions-free vehicles.

Hyundai Motor is also scheduled to unveil an electric version of its smallest Casper SUV in the latter half of 2024, paving the way for an era of entry-level EVs. Its price is not expected to surpass 30 million won, possibly becoming the cheapest EV model Korean automakers sell.

Overseas carmakers are also on track to release cheaper EV models to defend against possible sales falls amid lingering economic risks here and abroad.

Volvo Cars Korea recently launched its smallest-ever EX30 SUV here. The EV is priced at up to 55.16 million won here. The vehicle is set to be available for sale in the first half of 2024.

Automakers are retooling their business strategies, with data showing global auto sales growth will slow in 2024. According to data from the Korea Automobile Manufacturers Association, the global auto market is forecast to grow 4.1 percent in 2024 from a year earlier. The association also predicted around 94.55 million vehicles will be sold in 2024. The weak growth is attributable to shrinking demand stemming from economic doldrums amid high-interest rates.

“Automakers will go all-out to promote hybrid vehicles and low-priced EVs in 2024, as customers feel growing financial burdens when purchasing conventional mid-sized flagship EVs due to the macroeconomic factor,” an official from an automaker said.