Kia plans to expand its sales in Europe, though it faces the challenge of balancing growth with maintaining profit margins and meeting stricter CO2 emissions regulations set by the European Union (EU).
The company has steadily increased its European market share over the years. As of April, it reached 4.1%, up from 3.2% before the COVID-19 pandemic, based on data from the European Automobile Manufacturers Association (ACEA).
Currently, Kia ranks as the 10th largest car seller in Europe, surpassing competitors like Ford, Opel, and even its sibling brand Hyundai.
A major contributor to Kia’s growth in Europe is the success of its fully electric EV3. After just four months, the EV3 has added over 24,000 units to Kia’s sales figures, according to DataForce.
With this success, Kia’s share of Europe’s battery-electric vehicle (BEV) market stands at 5%, slightly ahead of its overall market share.
Kia’s growth strategy in Europe is heavily focused on EV sales, as the market remains about two million vehicles below pre-pandemic levels. Carlos Lahoz, Kia’s Sales Chief, highlighted the importance of EV sales in the company’s ongoing expansion at the Automotive News Europe Congress.
Following the EV3’s strong launch, Lahoz expressed optimism about the upcoming EV4 compact sedan and hatchback, which will be released in the third quarter.
The EV3 secured its position as the sixth-best-selling BEV in Europe through April, with 24,154 units sold, according to DataForce.
This success has also helped Kia make significant strides in reducing its CO2 emissions, with the brand ranking among the top performers in Europe this year, said Marc Odinius, CEO of DataForce.
The EV4 hatchback will be produced at Kia’s European plant in Zilina, Slovakia, allowing for greater flexibility to meet demand.
Additionally, Kia plans to launch the PV5, its first light commercial vehicle, later this year.
However, Kia’s growth path is complicated by geopolitical instability and the need to juggle various factors, such as increasing EV sales, preserving profitability, and adhering to strict CO2 targets, Lahoz noted.
“If we rely too heavily on combustion vehicles, we risk missing CO2 targets and facing penalties,” Lahoz explained. “On the other hand, if we push EV sales too aggressively, it could hurt our profit margins.”
