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The reason Kia is emerging as a formidable competitor to Tesla in the electric car market

Korean automaker Kia and its brother Hyundai are launching more impressive all-electric models to create formidable challenges for electric car giants like Volkswagen and Tesla. They impressed with the Kia EV6 line, which just won the European Car of the Year (COTY) award.

Surprisingly, despite being hailed as KIA’s first all-electric sports SUV, the EV6 lags behind the aging Kia Soul in key markets. The consumption of Soul given by Kia is 44.5 kWh / 280 miles, while the battery pack with a capacity of 77.4 kWh can only travel 300 miles.

And while the electric car revolution is at its height, there are still some worrying problems. The supply chain, which has just begun to recover from the Covid pandemic, was once again disrupted by the Russia-Ukraine conflict. This risks reversing the expected decline in battery prices due to cuts in supplies of key minerals.

A survey from the British consumer magazine Which indicates that one of the main factors that make electric cars attractive to the public is simplicity and reliability.

Which’s latest reliability survey asked more than 48,000 people from across the UK about the 56,853 cars they already own. The results showed that electric vehicle owners not only had the highest failure rate, but also the highest rate of vehicle breakdown or failure to start. Which assumes this is mainly due to unreliable software

The reason Kia is emerging as a formidable competitor of Tesla in the electric vehicle market - Photo 1.

Which new fuel specific ratings indicate that Kia makes the most reliable electric cars you can buy, while Tesla makes the least reliable.

Kia has set an ambitious global sales target, increasing sales by nearly a quarter to 4 million units by 2030 compared to 2022. Just over a quarter of those are battery electric vehicles. Unlike brother Hyundai, the company is still quiet about its Hydro plans. Kia’s next electric vehicle, the EV6, is expected to launch in 2023 and is part of a plan to produce 10 electric vehicles by 2026.

Last year, according to research by Schmidt Automotive, the Volkswagen group with the VW, Audi, Skoda, Porsche and SEAT brands topped the sales charts in Western Europe with nearly 300,000 units accounting for a 25% market share. Kia/Hyundai ranked 5th with sales of 133,000 vehicles, equivalent to 11.2% market share and behind Stellantis, Tesla and Renault Nissan.

The best sellers are Tesla Model 3 (140,000-11.7%), followed by Renault Zoe (70,340-5.9%) and VW ID.3 (68,000-5.7%). Kia Niro ranks fifth and Hyundai Kona 9th, but this year the market is expected to heat up with the launch of Hyundai Ioniq 5 and EV6. Hyundai’s premium brand, Genesis, will also introduce the GV60 model, while the Tesla-made Model Y in Germany is sure to generate a lot of excitement.

Matt Schmidt of Schmidt Automotive thinks that Korean brands may have an advantage against Tesla.

“Of course, the main competitor is the Model Y. With Kia offering a seven-year warranty on the EV6, you don’t have to look far to know they have a trump card over the competition from California/Europe. . Not to mention Tesla’s quality issues still have some customers wondering, Kia can score big with this. ID.4 from Volkswagen is another competitor, as is the Ioniq 5 (similarly designed) and the upcoming Genesis model. In the future, models like the Toyota bZ4x will also join the racetrack with Toyota’s inherent reputation for reliability,” said Schmidt.

The reason Kia is emerging as a formidable competitor of Tesla in the electric vehicle market - Photo 2.

Fierce competition on the electric car circuit could threaten Volkswagen’s position.

“Which rivals are Kia and Hyundai most likely to threaten, and I would say VW Group models. With Hyundai/Kia quality said to be on par with or even better than VW’s, they certainly have the ability to scale up and offer a premium product at a more competitive price point than the German brand. ,” Schmidt said in an interview.

Arne Brethouwer, founder of the Netherlands-based EV data provider Europe, agrees: “If both brands can maintain the current pace of electric vehicle development, then it will. not much of a threat to them. They currently have a very solid and advanced platform that only a few can compete in that segment. Other similar brands will have to work very hard to catch up. Direct competition in the segment now comes from the VW brands themselves, mainly from Skoda and other VW brands.”

Source: Forbes

https://cafebiz.vn/ly-do-kia-dang-noi-len-la-doi-thu-dang-gom-cua-tesla-trong-thi-truong-xe-dien-20220407225421819.chn


Trang Nguyen

Following Economic Life

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