South Korean carmaker Kia has started production of its EV4 full-electric hatchback at its Žilina plant in Slovakia. It’s the first Kia electric vehicle to be manufactured in Europe, although the factory itself opened in 2004, in a land that has rapidly become a ‘magnet’ for car factories. And there are good reasons why.
Designed specifically for the European market, the five-door variant of the EV4 will be assembled exclusively at Kia AutoLand Slovakia, the carmaker says. There is also a sedan variant, built in South Korea (Gwangmyeong) since March 2025, intended for the Asian and US markets.
Starting at €38,890
Kia announced in July prices for its EV4, its mainstream C-segment EV hatchback, bridging the gap between mass-market value models (like the upcoming EV2) and higher-tier EVs, such as the EV6 and EV9. Prices range from €38,890 to €53,750 with first deliveries scheduled for October.
With its sleek silhouette and aerodynamic design, the EV4 is Kia’s first global electric sedan (for Korea and North America) or hatchback (for Europe), marking a fresh entry beyond crossovers and over-hyped SUVs, which tend to look alike.
Kia aims to sell around 160,000 units of the EV4 globally in 2025, with approximately 80,000 units destined for Europe, about 50,000 for North America, and the remainder for Korea and other regions. These are ambitious figures, as Kia’s total BEV sales in Europe in 2024 were around 81,000 units, representing a slight decline.
Showcase factory
Kia likes to see its modern car factory in Žilina (Slovakia) as a showcase. “It is one of the pillars of the brand’s European operations. Opened in 2004, this site covers two square kilometers and enjoys a strategic location to serve the continent’s main markets.”
“It employs around 3,700 people and works with more than 600 advanced robots. The plant can produce several model variants simultaneously in five main departments: press shop, body, paint, engines, and assembly.”
“The start of production of the EV4 is an important step for us. It illustrates the technical capacity and flexibility of our European operations,” says Marc Hedrich, President and CEO of Kia Europe.
BEV, hybrids, and ICE
“From August 20, Slovakia will be building 100% electric vehicles in addition to hybrid and thermal models. With the expansion of our manufacturing capabilities, we are further strengthening our support of our diverse European customer base.” Kia has been building models like the Ceed, Sportage, and Venga in its Slovenian factory since 2004.
With an annual capacity of 350,000 vehicles and 540,000 engines, the plant has produced more than five million units since its opening, which are exported to 83 countries. This accounts for approximately 11% of Kia’s global production.
It has been further modernized to build fully electric vehicles, in addition to other drivetrain variants, from now on. After an investment of €108 million, the production lines were modernized with new technologies, including an electric battery conveyor belt integrated into the chassis line of the assembly hall, Kia states.
Detroit of Europe
Slovakia is often considered a modern version of the ‘Detroit of Europe’ in terms of concentration of auto production. Kia was one of the first, after Volkswagen established its Bratislava plant in 1991. However, it was not until 2004, followed shortly after by PSA/Stellantis (Peugeot-Citroën-Opel) in Trnava in 2006, that the second plant was established.
Later, Jaguar Land Rover (JLR) followed in Nitra (2019). And now Vovo is building a brand-new plant for fully electric cars in Košice, planned for 2027, a first in Eastern Slovakia.
Despite having just over 5.5 million inhabitants, Slovakia produces more than 1 million vehicles annually, ranking it as the world’s top car producer per capita.
Why is Slovakia so attractive?
Slovakia attracts carmakers due to its central European location, a skilled and more affordable workforce, a strong supply base, and attractive government incentives, often supported by the European Union. These are EU regional development funds, particularly for eastern regions (such as Košice), which are less developed than the Bratislava area.
If we compare Slovakia (Kia Žilina, VW Bratislava, Stellantis Trnava, JLR Nitra) side by side with Belgium’s only remaining car plant, Volvo Car Gent, one of Europe’s oldest and largest Volvo plants, the reason why is very clear.
Four times lower labor costs
First of all, labor costs are three to four times cheaper in Slovakia than in Belgium. According to Eurostat (2023), the average manufacturing labor costs in Slovakia were around €13 to €15/hour (total labor cost, including wages, taxes, and benefits), while in Belgium, this is roughly €48 to €50/hour.
The average monthly gross wage in the automotive sector of Slovakia is €1,400 to €1,600. At the same time, in Belgium, this amounts to €4,500-5,000+, depending on shift work & collective agreements forced through by strong labor unions.
With a strong industrial heritage, skilled engineers, and lower labor costs compared to those in Western Europe, Slovakia strikes a compelling balance of cost competitiveness. That’s especially beneficial for high-volume EVs and smaller cars, such as the Kia EV4 or the Peugeot 208.
Still, quality has been consistently ranked at par with Western plants even for high-end models. VW, for instance, produces premium SUVs like the Porsche Cayenne and Audi Q7 in Bratislava. And Slovakia is often described as “Germany’s extended workbench”, benefiting from German engineering oversight.
€81,000 subsidies per job created
And there are the government subsidies and incentives. Belgium has a corporate tax rate of 25%, which is slightly above the EU average of 21-21.5% and lower than those of Germany (29.9%) and Portugal (31.5%). A few EU countries offer significantly lower rates, such as Hungary (9%), Ireland (12.5%), Cyprus (12.5%), and Bulgaria (10%), which are among the lowest in the EU.
Slovakia, on the other hand, has a flat corporate tax rate of 21%, but investment incentives often reduce the effective rate. Up to 25-35% of eligible costs can be covered, depending on the region.
Example: Volvo’s new Košice EV plant required an investment of €1.2 billion in 2022, of which €267 million was in Slovak/EU-approved subsidies, or roughly 22% of the total. If you compare that to the jobs to be created, some 3,300, that would be roughly €81,000 per job in subsidies.
Belgium does not typically hand out massive direct subsidies like Slovakia. Instead, it offers R&D tax deductions, innovation income deduction, and wage subsidies for night shifts or older workers.
If you translate that for Volvo in Belgium, with 6,500 employees, support is often €10-20k per job annually in tax relief, but not like the giant one-off subsidies in Slovakia.
