
Kia EV5 Launch Delayed: New Affordable Electric SUV Faces Unexpected Setbacks As It Aims to Rival Tesla Model Y
The Kia EV5, a new mid-size electric SUV slated to rival Tesla’s Model Y, is experiencing delays in its international market debut. First unveiled at the Chengdu Motor Show last August, the EV5 has since stirred considerable interest for its competitive pricing and specifications, reminiscent of Tesla’s popular Model Y.
Officially launched in China this past November, the EV5’s entry price is set at roughly $20,000 (149,800 yuan), making a stark contrast to Tesla’s Model Y starting at $34,500 (249,900 yuan). The EV5 measures 4,615 mm in length, 1,875 mm in width, and 1,715 mm in height, offering a slightly more compact frame than its Tesla counterpart. It is available in two main trims: the base model includes a 64.2 kWh BYD Blade battery, boasting a range of up to 329 miles (530 km) according to the China Light-duty Vehicle Test Cycle (CLTC), and a long-range model with an 88.1 kWh battery capable of up to 447 miles (720 km).
Despite its successful launch in China, the rollout of the EV5 in markets such as Australia and New Zealand has been postponed until late 2024. The delay is attributed to unexpected updates needed for the vehicle’s wheels and software. Initially, the EV5’s Air and Earth trims were expected to debut by mid-June, with the more sophisticated GT-Line trim planned for a later release in the fourth quarter. However, the revised strategy will see all trims released simultaneously later in the year.
A Kia Australia spokesperson explained the shift in schedule: “Due to the delay, the launch of EV5 Air and Earth variants will be rescheduled to align with the production and arrival of the top GT-Line trim later in the year.”
Once launched, the EV5 is anticipated to be priced around AUD 60,000 in Australia, closely matching the Tesla Model Y’s AUD 55,000 tag. In New Zealand, the starting price is expected to be NZD 67,990 following the delayed launch.
The EV5 is part of Kia’s broader strategy to assert itself within the burgeoning electric vehicle market. Following the EV5, Kia has introduced the EV3, which opened to pre-orders in Korea at a price of $30,700 (KRW 42.08 million), amassing over 10,000 reservations in just 23 days. Plans are also underway to launch the EV4 next year, targeting the electric sedan segment.
Kia’s efforts to create an affordable yet robust electric vehicle lineup starting with the EV5 juxtapose sharply with Tesla’s offerings. By emphasizing competitive pricing and comparable range performance, Kia hopes to carve out a significant share in the electric SUV market, challenging established brands with its innovative models and aggressive pricing strategy. The impact of these new models on the global electric vehicle landscape, particularly against a backdrop of evolving consumer preferences and technological advancements, will be telling of Kia’s long-term viability in this intensely competitive arena.