Kia Niro EV Orders In Europe Come With 12-Month Wait

FEB 21 2019 BY MARK KANE 41

The better the EV is, the longer you need to wait?

The Kia e-Niro is one of the best new electric cars on the market, but unfortunately, when it finally hit the market, it turns out that demand exceeds production capacity severely.

Earlier this month we saw signals about constraints from the UK, but now it’s clear that e-Niro availability will be scarce globally.

Electrive.com obtained a dealer letter, which indicates that delivery time could extend to more than a year because demand is exceeding expectations and there’s not sufficient battery production capacity.

Kia recommended communicating a delivery forecast of at least 12 months, instead 6 months previously, in the case of new orders! Moreover, also the already placed orders will be affected by delays.

“The letter was made available to electrive.com. In the letter, Kia further states that this applies both to new orders and to already concluded orders for the e-Niro. Accordingly, it is recommended to adjust the generally communicated delivery forecast from “6 months from order” to “at least 12 months from order”. In addition, the company added: “first of all, we want to ensure nationwide availability with demonstration vehicles”, “in order to enable as many potential buyers as possible to obtain comprehensive advice and test drives.”

It’s bad news for those who saw all the positive reviews about e-Niro and would like to purchase. Also, Kia is in a difficult situation, because it will not be able to realize the full potential of its well-developed electric car.

Source: electrive.com

Categories: Kia

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41 Comments on "Kia Niro EV Orders In Europe Come With 12-Month Wait"

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Do Not Read Between The Lines

New BEV has waiting list, just like pretty much all BEVs in Europe.

I am shocked. Shocked, I tell you.

Not sure if it’s legal in Europe, but there’s sure-fire way to get rid of waiting: increase the price until waiting list is gone. That’s how US dealers handle high demand cars.

We don’t buy the car from dealerships but at dealerships. There is a difference.

Not sure what you mean; the dealer does own the car, not Kia USA or whatever, while it is in their possession.

This is exactly the difference between how car sales work in North America and Europe. The car you buy in Europe doesn’t exist yet, they will build it once you have ordered it.

Which is one of the reasons that I feel Tesla’s margins are overstated when compared to other brands. There’s been much talk of sorta non-standard accounting such as how they book sunk costs like design, but besides all that there’s the basic fact that margin needs to be higher due to not having dealerships. If Ford makes 10% margin on a vehicle, neither the costs of nor the revenue of the dealerships hit the Ford books. Presuming the dealer is profitable, that profit wouldn’t be part of a margin calculation by Ford. Ford gets paid for their car when the dealer takes possession. Thus the massive tied up capital in inventory is also a burden shouldered by the dealer and not Ford. Typical stock supply is 60 to 90 days. Which if there are 17 million new vehicles sold, a 90 day supply and using a $30,000 average transaction price means on any given day there are $128,000,000,000….that’s BILLION WITH A B…..worth of vehicles sitting on dealer lots. Dealers finance their inventories so they are paying interest on that money too. Basically if Ford makes 10% and the dealer clears 10%, then the vehicles made 20% profit. Not having dealers… Read more »

No, that’s not how it works in many (most?) places outside the US. In my country, there is no such thing as a dealership or a dealer. There are showrooms operated by the importer, but a new car is always ordered directly from the importer using a standardized contract, and at the official price (it’s not really “MSRP” because it’s not a recommended price, it’s a country-wide price).
While you sign the order contract at the showroom, you cannot buy a physical car you saw there, because the showrooms have only floor models & demo cars, no saleable car stock on lots. It is always an order, and typically takes a few weeks until you get the new car delivered.
Under this system there is no price negotiation either, except to a small degree if you’re buying a car that someone else ordered & canceled, or at end of year, when the importer is clearing out unsold cars for new inventory.
Service garages are independent operations that don’t sell cars, although sometimes the importer-owned showrooms are colocated with them for convenience.

That’s what PSA did with the Opel Ampera-e.

There are a official price. You can’t sell over that price. In some markets like Spain, usually the official price is quite high and a discount is almost always applied when you buy a car. If the car is successfull, this discount is less or none. If a car has a price of 20.000 € you can buy it for 17.000, 18.000… you visit many dealership looking for the best offer. But nobody gonna buy a 20.000 € car for 21.000 €.

In Spain, in the Kia official website you can see today, that the e-Niro has a discount of 3630 € even with the high demand.

https://i.imgur.com/Cnf9xxh.png

Pd: Is possible to insert photos in the message?. How?.

It’s an intentionally production limited compliance car

I think you are confusing intent with capability. For instance you may intend to make an insightful comment, and yet not be capable of doing so.

Well, his name reflects his comment…

How is his comment not accurate. Yes, it is has good specs…but if they are intentionally not building many then it really is just a compliance car. It’s far more frustrating than the 100 mile range EVs since it is such a tease.

To know about their secret intent you have to be present at the highly secret management meetings.
I personally only know about their public comments. In their public comments they tell a very believable story about supply and production capacity.

Hyundai/Kia did not expect serieus demand for their fully electric offerings. They have made many apologies for getting it wrong. They have increased their production goals to meet the demand repeatedly. It is the best documented case of a company having it wrong and admitting it.

I cam across some articles in the Korean English language press about this. No, I did not save the links, sorry.
It was not intentionally, it was just incompetence.

Leaf waiting list is shorter (at least was in November), around 4-6 months IIRC. You could even have one faster if you went for one of the demo models available in the dealer network (rotated frequently, small additional discount but top trim only).
It’d be interesting to see if the Kona is as successful, because it is quite a bit more expensive while not being quite as large as the Niro. Strange for two cars sharing the same tech and coming from the same group.

Yep but why would you want a Leaf at this point when proper liquid-cooled electric cars are coming onto the market.

I consider the Leaf’s battery way to high a risk. I want my EV to serve 15 years before its battery degrades to 70-80%. The M3 is projected to do this.

Same for the eNV200 in Switzerland

Compliance car.

Hyundai Kia shot up the EV sales chart to sell 90k last year.

With battery production doubling each year Expect sales to do much the same.

90K? Where? Click on that plug-in sales scorecard at the upper right and you’ll see their sales are dismal…just a few thousand. Yes, that is USA only. But where are they selling these supposed big numbers of EVs?

It is true, Hyundai sold 53k EVs last year, Kia 30k+. Europe and Asia is their big markets.

I wrote an article at the competition about the USA not getting much love from foreign EV makers.
The reason / problem is American dealers and their lots.
You can expect this problem to get worse.

We are approaching 3 years for the Tesla Model 3 in the UK and still have no date of when it will arrive so 1 year will fly by!

The UK is planned for Q3-2019 as is communicated a number of times.

Doesn’t bode well for the US. But you could buy or lease a Bolt instead. And maybe in 3 years the Niro will have enough supply.

Agree, I think these will be rare in the U.S. for a long time. I talked to a Kia supposedly top sales person in the Cal. Bay area who assured me that they would sell them at MSRP. I hope it’s true but that will probably mean a long wait and maybe only higher trim versions. You can get a big discount on a bolt now and full tax credit until 3/31.

The waiting list is only 12 months because more knowledgeable people know that these are ultra-low volume compliance cars and are practically unicorns as availability goes.

I heard about production targets like 40K globally for the Niro AND the Kona together.

This is enough for practically nothing and obviously sold out in a jiffy.

Maybe VW will be different and I still hope for significant production of the M3 SR at the end of the year.

Getting a proper electric car at a reasonable price seems like an exercise in futility at the moment.

You heard wrong. There is no combined target. The battery supply is the limiting factor for both. They have different battery suppliers.
I expect each to have sales between 40k and 80k, depending on the battery production that is available.

If the battery production why the heck then launch another car the new soul with same battery pack?
Now kia will have 2 cars with long wait time and frustrating buyers.

Well, one thing is for sure…anyone who says “People don’t want to buy electric vehicles” need to shut up. There is a huge demand out there. The only issue is being able to build vehicles with a good range & good DC-fast-charging at an affordable price.

You hit those 3 metrics (range, DC-fast-charge, & price) and buyers will beat a path to your door.

Well getting into the game late and with all the pent up interest now that the Model 3, Bolt and Gen 2 Leaf have helped to bring BEVs into the mainstream light, is bound to cause some issues. People waited more than 2 years for the Model 3 so not surprising the delay. Hopefully they can ramp up sooner to not miss the opportunity. The Niro EV is a great car!

Its Battery supplier SK innovation is building a battery factory in Georgia.

On track to contunue to double battery production year over year.

Huh. Imagine that. Everyone building decent EVs is seeing more demand than they can meet.

What a novel problem for mass-market automakers to have!

When will the lightbulb illuminate in their CFO’s heads?

Seriously, how much longer can demand be considered “unprecedented” or unforeseen. Literally every new EV with modern specs is going to sell as many as they can make for at least a couple of model years. Also, most of these cars have pre-orders meaning that manufacturers know exactly who wants them and where they want them IN ADVANCE. My God, it’s a retailing wet dream and they still can’t get it right.

Roll out of the Kona Electric and the Niro EV reminds me of the roll out of the Outlander PHEV. It took several years before the Outlander PHEV was available in the USA after it went on sale in its’ home country.

Now the Outlander PHEV is widely available in the USA. Since I have a couple more years on my Leaf lease I can wait but I feel for those that are ready to pull the trigger on a new EV purchase. The good news is that the Kona Electric and the Niro EV should be widely available once supply catches up to demand.

I’ve been disappointed by the weak sales of the Outlander PHEV in the USA. But I suspect most people don’t even know it exists. The Mitsubishi dealer network is pretty thin.

Compliance car.

A few weeks ago I spoke to a sales representative of a Kia dealership in Amsterdam, and he told/warned me that I would have to be prepared/willing to wait for about 14 months if I wanted to order a Kia e-Niro.

It wasn’t like he didn’t want to sell the Kia e-Niro, but he wasn’t that much excited about it either.

And he did mention that I would not have to wait that long if I would order the Hybrid version or the PHEV version of the Kia Niro.

In the Netherlands tax benefits for people that have a company car make the Kona and Niro EV’s virtually free for them, instead of hundreds euro’s a month. which is why demand is very high; almost all new car sales are company cars over here.

This is also hurting general EV adoptation as used EV’s are hard to come by and the price is much higher than a normal used car, only a couple of thousand off after two years instead of like 25-30%.

People are even getting 2 year old Ioniqs for almost current list price to be able to benefit 3 years from these tax benefits as they are five years from first registration.

The private buyer is left in the dust.

In relation to their statement, as I understand the wording, should Kia rather than giving e Niro’s to dealers to generate more orders not use them to fulfil some of the orders they already have.

Ordered a Kia e-Niro More 64kW, in Belgium on Februari 28th. Received an expected delivery date of: November 15th 2019.