Kia Corp., under Hyundai Motor Group, began producing the EV4 hatchback, a compact electric sedan, at its plant in Žilina, Slovakia on Aug. 20, its first model built in Europe on the group’s EV-dedicated Electric Global Modular Platform (E-GMP), according to industry sources.
The move aligns with Hyundai Motor Group’s drive to regain ground in Europe, where Chinese rivals have been hit by tariffs of up to 45.3% since November. The South Korean automotive group is also stepping up local production in the US to sidestep 25% tariffs.
In 2024, Kia, South Korea’s second-largest carmaker, established a mixed production system in its Slovakia Autoland plant to add EV lines with an investment of 108 million euros ($126 million).
The facility has rolled out Europe-only combustion engine models such as the Ceed and Sportage.
In February, Kia premiered the Kia EV4, its first electric midsize sedan, along with other EVs tailored to the European market.
The start of EV4 production is a major milestone and demonstrates Kia’s technological capabilities and manufacturing flexibility in the region, said Marc Hedrich, chief executive of Kia’s European operations.
TWO-TRACK STRATEGY
In Europe, Kia is pursuing a two-track strategy, producing the EV4 hatchback locally in Europe while exporting the base model from South Korea.
Last month, Kia shipped more than 800 units of the EV4 produced at its Gwangmyeong plant in South Korea to Europe following the success of its compact electric SUV, the EV3, in the continent.
Through July this year, the EV3 has sold 39,334 units in Europe through, surpassing domestic sales of 14,724 units during the period.
HYUNDAI IN TURKEY
Hyundai Motor Co. has embarked on the process to establish a mixed production system in its plant in Izmit, Turkey to accommodate EVs.
The first model from the plant is set to debut at the IAA Mobility 2025 show in Munich in September, with industry observers expecting it to be the compact EV, the IONIQ 2.
In tandem with its affiliated EV push in Europe, Hyundai Mobis Co. is building an EV-dedicated power electric system plant in Slovakia and a battery system assembly facility in Spain. Both are slated to begin operations in 2026.
Europe’s EV market is showing signs of recovery.
According to JATO Dynamics, an automobile data provider, EV sales in the region rose 25% on-year to 1.19 million units in the first half of the year.
That contrasted with a 0.3% decline in overall automobile sales in the continent during the same period.
The European Union’s tariffs of up to 45.3% on Chinese EVs, imposed in November, are expected to give boost to Hyundai Motor Group.
Chinese carmakers are constructing local production lines in the region, but have yet to start local manufacturing.
At 2025 Kia EV Day held in Spain in February, Kia unveiled a goal of selling 80,000 units of the EV4, its first electric midsize sedan, in Europe, or half of its global sales target for the model.
Kia will begin producing its entry-level electrified model EV2 at its Slovakia plant this year and launch the model in Europe early next year, ahead of other markets.
At 2025 Kia EV Day, Kia CEO Song Ho-sung said the company expects to sell more than 100,000 units of the EV2 annually, adding that about 30% of cars sold in Europe are priced between 30,000 and 35,000 euros.
“We have launched the EV3 at 35,000 euros. The EV2 targets customers who may find that price steep, and we expect it to generate strong demand,” he said.
Kia aims to increase its EV sales ratio to 37% of total sales volume by 2030.
By Jung-Eun Shin
newyearis@hankyung.com
Yeonhee Kim edited this article.
