Kia has confirmed it’s working on an affordable city-size electric car – even smaller than the 2026 Kia EV2 already announced – as a direct competitor to the BYD Seagull, Dacia Spring and Fiat 500e.
Speaking to UK publication Autocar, Kia president and CEO Ho Sung Song said a cheaper, smaller electric city car was “homework”, confirming such a car was “one area we are studying and developing”.
Mr Song also said affordable, city-sized cars would remain an important part of the brand’s lineup as European buyers move towards EVs.
Kia technically already offers a city-sized EV – the Picanto-based Ray – but this tall, boxy model is exclusive to Korea.
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The new city EV would take over from Kia’s entry-level petrol-powered Picanto – currently Australia’s cheapest new car – which was significantly updated in 2023 and still sells strongly in Europe.
With a replacement still as far off as 2028-2029, the Picanto’s replacement could well ditch the current version’s 1.2-litre four-cylinder petrol engine to become a battery-electric city hatch.
It would face the BYD Seagull, set to go on sale in the United Kingdom later this year as the Dolphin Surf, at less than £20,000 ($41,874).
The Seagull is under consideration for Australian showrooms and could become the cheapest EV offered here, given it would sit below the current price leader – the BYD Dolphin electric hatch at $29,990 drive-away.
Even then, the current petrol Picanto could remain on sale alongside a newer, electric offering in Kia showrooms.
Other brands have also planned this approach, such as Volkswagen, which intends to sell the petrol-powered Golf alongside battery-electric versions well into next decade.
Kia has been prolific in rolling out EVs, with its smallest, the funky EV2 five-door SUV due on sale overseas in 2026 but unlikely to be offered here.
The Kia EV4 electric sedan – a Tesla Model 3 rival – is scheduled to arrive in Australia in the last quarter (October-December) of 2025, joining the EV3, EV5, EV6 and EV9 electric Kias currently in Australian showrooms.
The EV5 has been Kia Australia’s most popular EV so far in 2025 and the fourth-most popular EV overall, with 2765 delivered to the end of June – putting it behind the third-place Model 3 with the MG 4 behind in fifth.
Mr Song said Europe will “drive volume from a full EV lineup” because of a “strong trend” towards electric cars – yet internal combustion engines will remain important in emerging markets lacking electric-charging infrastructure.
It will also enable Kia to maintain a flexible approach to respond to market trends when necessary.
“The final destination in Europe is EVs, which is why I want to be a very strong EV player in Europe … but if we look at worldwide demand we should have alternative powertrains, like hybrids, plug-in [hybrids] and EREVs [extended-range electric vehicles],” he said.
Sales of hybrids in Australia in the first six months of 2025 increased 14.9 per cent, following a 76 per cent jump in popularity in 2024, while key markets – including China and the United States – have also seen significant hybrid growth.
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