Kia Plans To Take On Affordable Chinese EVs In Canada With Its Sub-$40K EV3

Will a sub $40,000 electric hatchback be able to compete with Chinese offerings?

Kia EV3

Photo by: Suvrat Kothari

Nico DeMattia

By: Nico DeMattia

Oct 23, at 10:19am ET

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Chinese EVs are coming to Canada, now that the country removed the 100% tariff on them. Admittedly, only the first 49,000 cars imported per year dodge the higher tariff, so it won't exactly be a flood of vehicles coming in, but Canadian customers are excited about them nevertheless. Since Chinese EVs often wear extremely competitive price tags, or sometimes undercut their competition by huge margins, legacy automakers are understandably nervous.

Kia has a plan, though. According to Automotive News, to keep up with incoming Chinese EVs, the Kia EV3 will be priced under $40,000 in Canada. More importantly, it's doing it first.

“We’re trying to be the first affordable EV brand in the country,” said Kia Canada Chief Operating Officer Elias El-Achhab. during the Automotive News Canada’s Retail Forum in Toronto.

According to El-Achhab, Kia's EV3 pricing and timing working out so well to compete with Chinese EVs is coincidental. The $39,744 price tag wasn't picked to take on China's new cars, but simply to be competitive in the market. Kia also set the price before it learned of Canada bringing the $5,000 EV rebate back.

2027 Kia EV3

Photo by: Kia

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El-Achhab was asked if Kia's affordable pricing actually puts it in more danger versus Chinese EVs. However, El-Achhab argues that Kia offers a better value proposition at its price point. “I actually think the opposite,” he said of its competitive pricing potentially hurting it. “Because we are more affordable…and I will reiterate, it’s more of a value equation that we offer.”

Kia also knows that government policies change, and so does competition, so it needs to be flexible. It's unclear exactly how much Chinese EVs will cost when they finally hit Canadian shores, and if the EV3 will undercut them. But Kia's starting from a strong position.

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