Kia has unveiled its first compact electric SUV, the EV3, built on the company’s dedicated EV platform. Despite a slowdown in the global electric vehicle market, Kia is banking on attractive pricing to draw in buyers. The EV3 is part of Hyundai Motor Group’s ambitious plan to launch over 31 electric models by 2030, encompassing Hyundai Motor, Kia, and Genesis brands. Kia has set a goal to sell approximately 1.6 million EV units by 2030.

Kia President Song Ho Sung announced that the EV3, constructed on the Electrified-Global Modular Platform (E-GMP), will be priced between $35,000 and $50,000. This pricing strategy aims to address two primary consumer concerns: affordability and charging infrastructure. Song emphasized that the EV3’s pricing would meet customer expectations.

In October, Kia outlined plans to offer a variety of EV models priced from $30,000 to $80,000, including the EV5, EV4, and EV3. This range positions Kia to compete with other brands targeting budget-conscious buyers, such as Volvo, which released its EX30 electric compact SUV last year with a starting price around €36,000 ($38,973.60).

The launch of the EV3 coincides with a rise in consumer interest in hybrid vehicles, even as EV sales have decelerated. In the first quarter, Kia’s hybrid sales jumped 31% year-over-year to 93,000 units, while EV sales grew 8% to 44,000 units. Kia aims for an annual global sales target of 200,000 units for the EV3, though the specific year for this target remains unspecified.

The EV3 will debut in South Korea in July, followed by a European release later this year, and a U.S. launch post-2025. The delayed U.S. release is due to Kia’s ongoing evaluation of the U.S. EV tax credit policy. The EV3 will feature two battery options: a 58.3 kWh pack and an 81.4 kWh pack, with production starting in South Korea. The long-range model will offer a driving range of approximately 600 kilometers (373 miles) on a single charge.