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Kia Revises Electric Vehicle Sales Predictions Amidst Evolving Market Dynamics
Kia, a prominent electric vehicle (EV) manufacturer popular among UK consumers, has adjusted its projections for electric car sales by the close of the decade. Citing a slower than anticipated increase in battery electric vehicle adoption and growing concerns regarding US tariffs, the South Korean automaker has reduced its 2030 global sales targets for zero-emission vehicles by 340,000 units.
Reduced EV Sales Targets
During its annual investor briefing, Kia executives announced a downward revision of its EV delivery expectations for 2030, from an initial 1.6 million electric cars to a revised figure of 1.26 million. This adjustment occurs despite substantial investments aimed at expanding its range of battery-powered vehicles.
The company states its intention to offer a portfolio of 15 EVs by 2040, encompassing a range of electric vans. Currently, Kia markets four electric passenger vehicles in the UK, with two additional models scheduled for imminent release, alongside the PV5 commercial vehicle.
Contrasting Sales Performance: Volkswagen and BMW Show EV Growth in Europe
In contrast to Kia’s revised EV sales outlook, both Volkswagen and BMW recently reported robust sales figures for their electric vehicles in the European market this week. This highlights a varied landscape within the automotive industry as manufacturers navigate the transition to electric mobility.
Kia’s Current EV Lineup and Hybrid Strategy
Kia’s current electric vehicle offerings include models such as the EV3, EV6, EV9, and Niro EV. The EV4 and EV5 are listed as upcoming models on Kia’s UK website, and the PV5 is anticipated to be available soon in both Passenger and Cargo configurations.
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Despite expanding its electric vehicle lineup and enjoying popularity among early adopters, Kia has recalibrated its sales forecasts for the remaining years of this decade. The company is now focusing on diversifying its hybrid vehicle availability across all market segments. This strategic shift aligns with the UK’s recently modified EV targets, which permit the sale of plug-in and conventional self-charging hybrids for five years beyond the 2030 ban on new petrol and diesel car sales.
Shift Towards Hybrid Vehicle Production
Responding to increasing global demand for hybrid vehicles, Kia aims to elevate its sales of this vehicle type to one million units by 2030, doubling the projected 490,000 units for 2025. This strategic pivot indicates an adaptation to evolving consumer preferences and market conditions within the electric and hybrid vehicle sector.
Kia’s “Plan S” business strategy outlines an objective to achieve revenues of 170 trillion Korean Won (£89.8 billion) in the medium to long term.
Despite facing 25 percent import tariffs, Kia anticipates selling 1.11 million vehicles in North America and 774,000 vehicles in Europe by the decade’s end. The company also projects 580,000 sales from South Korea and 400,000 from India.
Optimizing Supply Chain and Regional Production
To enhance its supply chain efficiency and mitigate import duties, Kia plans to expand local EV production in key regions. Korea will serve as the central hub for global EV development and manufacturing, while North America will concentrate on producing mid-to-large SUVs, and Europe will focus on compact SUVs and hatchbacks. This regional production strategy is intended to optimize costs and responsiveness to market-specific demands.
Volkswagen and BMW Report Increased EV Sales in Europe
Kia’s announcement coincided with the Volkswagen Group’s confirmation of over twofold growth in European EV sales during the first quarter of 2025, although sales declined by over a third in China. These results illustrate the varied performance of automakers in the electric vehicle market across different geographic regions.
Volkswagen’s dedicated electric car factory in Zwickau is currently undergoing significant cost-reduction measures. Vehicle production at the plant is slated for reduction as part of a recent agreement between Volkswagen and its works council and union, IG Metall.
This agreement, reached in December, averted factory closures and job losses until 2030, with the compromise of halving production capacity.
Arno Antlitz, CFO of VW Group, conveyed to employees in January that future investments would prioritize competitive plants, suggesting Germany would not be exempt from this principle.
BMW’s “Successful E-mobility Ramp-Up”
BMW Group also announced it is continuing its “successful e-mobility ramp-up” while navigating a fluctuating market environment. The company delivered 109,516 fully electric BMW, Mini, and Rolls-Royce vehicles worldwide in the first three months of 2025, representing a year-on-year increase of one-third.
Europe demonstrated particularly strong demand, with a 64 percent increase in sales, according to BMW.
Jochen Goller, a BMW AG board member, stated that the BMW Group’s technology-open strategy is proving effective, with products gaining customer appeal across all powertrain technologies. He highlighted the positive momentum driven by new Mini models, especially the fully electric versions.
The new electric Mini Cooper is being manufactured at a facility in Zhangjiagang through a partnership with Chinese automotive manufacturer, Great Wall.
Goller confirmed that one in three Minis sold in Europe and over half of those sold in China were fully electric, underscoring the growing adoption of electric vehicles in these key markets within the automotive industry.