Hyundai Motor Group launchs 1st EV-only production lines in Europe

Kia Corp. on Aug 20 launched production of the compact electric sedan EV4 at its plant in Žilina, Slovakia. The EV4 represents Kia's first Europe-built model on the group’s EV-only Electric Global Modular Platform (E-GMP), according to industry sources.

The move aligns with Kia parent Hyundai Motor Group’s drive to regain ground in Europe, where Chinese rivals have been hit by tariffs of up to 45.3% since November. The South Korean automotive group is also stepping up production in the US to sidestep 25% tariffs.
 
In 2024, Kia, South Korea’s No. 2 carmaker, set up a mixed production system at its Slovakia Autoland plant to add EV lines with an investment of 108 million euros ($126 million).

The facility has rolled out Europe-only combustion engine models such as the Ceed and Sportage.

In February, Kia premiered the EV4, its first electric midsize sedan, poised to rival Tesla Inc.’s Model 3, along with other EVs tailored to the European market. 

The kickoff of EV4 production in Europe is a milestone and demonstrates Kia’s technological capabilities and manufacturing adaptability in the region, said Marc Hedrich, chief executive of Kia’s European operations.

TWO-TRACK STRATEGY

In Europe, Kia is pursuing a two-track strategy, producing the EV4 hatchback locally in Europe while exporting the base model from South Korea.

Last month Kia shipped more than 800 units of the EV4 assembled at its Gwangmyeong plant in South Korea to Europe, following the success of its compact electric SUV, the EV3, on the continent.

Through July this year, Kia has sold 39,334 EV3 units in Europe, surpassing domestic sales of 14,724 units during the period.

HYUNDAI IN TURKIYE

Hyundai Motor Co. has embarked on the process to establish a mixed production system at its plant in Izmit, Turkiye, to accommodate EVs.

The first model from the plant is set to debut at the IAA Mobility 2025 show in Munich in September, with industry observers expecting it to be the compact EV IONIQ 2.

In tandem with its affiliate's EV push in Europe, Hyundai Mobis Co. is building an EV-dedicated power electric (PE) system plant in Slovakia and a battery system assembly facility in Spain. Both are slated to begin operations in 2026.

Europe’s EV market is showing signs of recovery.

According to JATO Dynamics, an automotive data provider, EV sales on the continent rose 25% on-year to 1.19 million units in the first half of this year.

That contrasted with a 0.3% decline in overall automobile sales on the continent during the same period.

The European Union’s tariffs of up to 45.3% on Chinese EVs, imposed in November, are expected to give Hyundai Motor Group a boost.

Chinese carmakers are building production lines in the region, but have yet to start local manufacturing. 

Kia will also begin producing its entry-level electrified model EV2 at its Slovakia plant this year and launch the model in Europe early next year, ahead of other markets.

At 2025 Kia EV Day, Kia CEO Song Ho-sung said the company expects to sell more than 100,000 units of the EV2 annually, adding that about 30% of cars sold in Europe are priced between 30,000 and 35,000 euros.

“We have launched the EV3 at 35,000 euros. The EV2 targets customers who may find that price steep, and we expect it to generate strong demand,” he said.

Kia aims to raise its ratio of EV sales to 37% of total sales volume by 2030.

Write to Jung-Eun Shin at newyearis@hankyung.com
 

Yeonhee Kim edited this article.