Kia explains what it would take for a $25K EV to exist and reveals it could happen
Published on Sep 19, 2025 at 8:59 AM (UTC+4)
by Claire Reid
Last updated on Sep 19, 2025 at 10:52 AM (UTC+4)
Edited by
Kate Bain
Kia could be gearing up to launch a more affordable $25,000 EV, as the company explains what would need to happen to get it made.
Kia already offers some lower-priced vehicles, like its EV3 SUV that costs around $40,700, and the even cheaper upcoming EV2, which will be released next year.
However, the carmaker hasn’t ruled out producing a much cheaper $25,000 option in the future.
But in order to do so, it would depend on one very important factor.
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A cheap $25,000 is dependent on one major factor for Kia
When it comes to making the switch from a gas-powered car to an EV, one of the biggest barriers is cost.
Although most EV owners soon notice they’re saving a lot of cash when it comes to fuel, the original outlay for an electric car is often a lot more.
And it is set to get even higher in the US in a couple of weeks, when the federal tax credit is scrapped.
Consumers have been calling on companies, such as Tesla, to make cheaper and more affordable EVs.
Now, Kia has said what it would take for the brand to build a $25,000 electric car- and you might not be surprised to learn it all comes down to profitability.
In an interview with Automotive News, Kia Europe boss Marc Hedrich said that there could ‘one day’ be a cheap EV1 electric car, but only if it made money for the company.
He said Kia was one the ‘world’s most profitable automakers’ and, unsurprisingly, wasn’t interested in creating an EV that doesn’t make enough cash.
As things stand at the moment, Hendrich says that you simply ‘cannot make enough money with a cheap EV’.
“To sell an EV even at €22,000 you have to make compromises on content, which is not something Kia is interested in doing,” Hedrich said.
Volkswagen has committed to releasing cheaper EVs
While we might still be waiting a while to get a super affordable $25,000 EV, brands are committing to cheaper EVs.
Earlier this month, Volkswagen said it was committed to introducing cheaper EVs, with the upcoming ID.Polo set to cost under €25,000 (around $29,000) for the entry-level model.
“For Volkswagen, the premiere of the smaller and more compact vehicles in its electric family marks the start of a new era – it will make electric driving more affordable than ever, thanks to new models such as the ID. Polo and ID. Cross,” the brand said in a statement.
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Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.
