Kia has confirmed plans for a sub-€25,000 electric city car as part of its upcoming EV line-up, alongside a next-generation SDV platform and range-extender technology for larger models. The brand continues to balance EVs, hybrids, and combustion engines to meet global demand.
Kia is preparing an entry-level electric city car to launch before the end of the decade, priced below €25,000, Kia president and CEO Ho Sung Song told the British magazine Autocar. Rumors suggest that before the end of next year, an EV1 Concept (if the car is indeed named EV1) could be unveiled, with the actual car expected to arrive in 2028.
The model will sit under the upcoming EV2 as part of Kia’s comprehensive electrification strategy, which combines next-generation software-defined vehicles (SDVs) with continued development of hybrid and combustion powertrains.
Multi-solution approach
By doing so, Kia joins the growing number of manufacturers committed to a multi-solution approach to drivetrains. Several of those who initially declared they would produce only electric cars by 2030 have already changed course and are now including other types of propulsion far beyond the end of this decade.
Speaking to the British news portal, Song confirmed the brand’s commitment to affordable e-mobility, noting that a sub-€25,000 model was “one area we are studying and developing.” In April, it was reported that Kia, along with Hyundai, of course, was looking to strengthen its focus on the lower end of the electric car market.
At the time, it was reported that, together, the mass-market brands will introduce 35 new and refreshed products in 2026, including smaller and cheaper electric cars. The sub-€25,000 electric city car is likely part of that lineup.
Budget EVs
Moreover, Kia will strengthen its budget EV portfolio next year with two models. The company plans to start manufacturing the Euro-focused EV2 in February 2026 and is expected to begin shipping it to dealerships in the spring of 2026. In April, it will unveil the electric variant of the Syros, its India-focused small SUV. Globally, Kia plans to build a diverse EV range comprising 15 models by 2030.
But back to the upcoming electric city car: Song told Autocar that the project is currently ‘homework’ for Kia. However, the company’s strong electric lineup, from EV3 to EV9, and with EV5 and EV2 on the way, reduces immediate regulatory pressure to replace the combustion-powered Picanto city car, which remains on sale following its 2023 update.
The new EV would effectively succeed the Picanto when its lifecycle ends before 2030, although Song suggested an ICE and EV city car could co-exist depending on CO₂ regulations. With the suggested price tag, the EV1 could rather be considered as a competitor to the Fiat Grande Panda, Renault 5, or Volkswagen ID.2 than to the small and cheap EVs (under €20,000) like the Renault Twingo, the upcoming Dacia Spring successor, the VW ID.1 and, undoubtedly, some Chinese competitors.
Hybrid, PHEV, and EREV
While Kia expects Europe to transition fully to EVs, Song emphasized that hybrid, plug-in hybrid, and range-extender (EREV) powertrains remain essential to global market flexibility: “The final destination in Europe is EVs, which is why I want to be a powerful EV player in Europe,” he told Autocar. “But if we look at worldwide demand, we should have alternative powertrains.”
Range-extender technology is exciting for heavy or large vehicles, where pure electric propulsion remains technically challenging. Kia’s first range-extender EV is expected to launch before 2030, expanding its hybrid and plug-in hybrid portfolio for markets lacking EV infrastructure in different parts of the world.
SDV is the future
Kia is developing a new ‘Software Defined Vehicle’ (SDV) architecture for its larger vehicles, which decouples hardware and software development, enabling shorter development cycles and cost reductions. “Because we are decoupling hardware and software, we can be more flexible, making different kinds of vehicles based on the same platform,” Song explained.
Development has been underway for three years, with a pilot project known as the ‘SDV Pace Car,’ featuring ‘fully-fledged SDV technology and AI-integrated autonomous driving technology.’ It will be presented as a demonstrator next year, before the new software ecosystem launches in volume models in 2027.
The architecture will underpin replacements for the EV6 and EV9. Future SDV-based models will also support greater user interface personalization and frequent over-the-air (OTA) software upgrades to enhance the perceived freshness of the vehicle.
Kia’s upcoming EV plans extend beyond passenger cars. The company’s PBV (purpose-built vehicle) strategy will see the PV5 electric van launch first, followed by the PV7 in 2027 and PV9 in 2029. Learnings from these commercial vehicles, especially regarding software and hardware integration, will also inform passenger car development.
Design and innovation
Design remains central to Kia’s brand strength. “If we repeat again and again [with the same design], maybe customers will feel it is boring,” Song explained, confirming future design renewals alongside continued concept car reveals.
Finally, Kia plans to introduce AI assistants across its lineup to enhance vehicle functionality, partnering with firms such as Samsung. “Customers are expecting more innovation in our vehicles. They are experiencing all-new functions from smartphones. They want the same in our vehicles,” Song explained. Full autonomous driving remains a development priority, to be baked into the upcoming SDV architecture as Kia transitions its entire mobility ecosystem to software-led innovation.
