Kia NZ rules out EV2 over production cost concerns

Kia New Zealand has confirmed it will not bring the EV2 to the local market, with Managing Director Todd McDonald citing European production costs and logistics as the primary barriers.

Speaking at the recent launch of the PV5 van, McDonald told NZ Autocar the business case simply did not stack up. “We have reviewed the vehicle, but we’re unlikely to take it,” he said. “Production costs, transport costs, lead time and the price that we sell EV3 at is very competitive on the global stage for EV3, which would make EV2 unviable.”

The EV2 is produced at Kia’s factory in Slovakia, making it a costly proposition to ship to New Zealand, even though the model is available in right-hand drive. By contrast, the EV3 is manufactured at Kia’s dedicated electric vehicle (EV) plant in Gwangmyeong, South Korea, a significantly shorter and more cost-effective supply chain for the New Zealand market.

EV1 future also uncertain

When asked about the even smaller EV1, a model Kia has been previewing, McDonald indicated its prospects for New Zealand would hinge on where it ends up being built. “That would be depending on where EV1 would be produced,” he said.

No further details on the EV1’s production location have been confirmed.

Kia doubles down on EV3

With the EV2 off the table, Kia New Zealand is focusing its small EV strategy on the EV3, which starts from $55,520 for the Standard Range variant. The model faces growing competition from a wave of smaller Chinese EVs entering the New Zealand market at lower price points.

To support EV3 sales, Kia has launched what it describes as “New Zealand’s best EV ownership offer.” The promotion includes $1,500 in charging credit, three years of road user charges (RUCs), a three-year service plan, and no on-road costs (ORCs). The offer also extends to the larger EV5 SUV.

The package is designed to reduce the total cost of ownership and address one of the key hesitations among buyers considering a switch to electric.