Over the past few years, the rollout of EVs in the UK new car market has been led by the fleet sector, with support from benefit-in-kind tax incentives encouraging company car drivers to electrify. Getting private retail buyers interested in EVs has proved to be a tougher task. However, one manufacturer that has seen EV retail success is Kia, which recently racked up its 100,000th EV registration in the UK (the total was 104,794 as of April 1).
Speaking with Automotive Management to mark the milestone, Paul Philpott, president and CEO of Kia UK, described how the brand has achieved particularly strong retail EV performance relative to market trends.
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He said: “The March new car market was about 22% EV, which was 17% of the retail car market, 26% of the total fleet market. We are ahead of both of those mixes, at 29% EV overall, but in the retail market, 25% of our sales were EVs – eight percentage points ahead of the market – while in fleet, 31% of our sales were EV, so 5% ahead of the market. So, relative to the marketplace, we are doing slightly better in the private retail channel.”
When asked for the reason for Kia’s EV retail appeal, Philpott cited the “appropriateness” of the brand’s product offering.
He said: “Certainly cars like the EV3 and EV5 appeal strongly to the retail car buyer. We’re supporting them with a finance offer which is attractive, and with strong residual values which means that on a PCP they are affordable.
“Of course, I could go right back to our seven-year warranty. That’s very appealing for a retail car buyer.”
Philpott attributes Kia’s wider EV success to the broad range of appeal of its electric models.
He said: “I think generally more and more people are interested in EVs. Getting them to make the switch is enabled by having a great product range.
“Certainly, our growth year-over-year is coming from the introduction of the EV4, EV5 and PV5. But the EV3, EV6 and EV9 remain strong, particularly the EV3. So, it’s having that breadth of product range.”
Philpott said that Kia’s growing reputation as an EV manufacturer was also part of its appeal.
He said: “Having sold EVs for 11 years, we have some foundations which give customers confidence that Kia EVs have reliable range, use good technology, can be charged quickly, and look great on the road, as well as being good value.
“I think it’s all that coming together, and momentum is building.”
EV2 could fight for top electric Kia status
Kia’s latest EV, the EV2 B-segment SUV, is now available for customers to reserve, with the first deliveries due later this year. Philpott expects it to be another model that appeals to retail buyers.
He said: “It will be our most accessible EV, and will sit, obviously, below the EV3. I think there will be good demand for this car from both retail and fleet buyers.
“As a very accessible, well-priced EV in the retail market with a strong residual value, monthly payments are going to look very attractive to couples and young families, as a second car in household.”
Philpott believes the EV2 may eventually pose a threat to the EV3 as Kia’s top-selling EV.
He said: “When we launched the EV3, we knew that product was ideal for the UK car market. A smaller SUV with great range and a really attractive design for UK car buyers.
“It was our best-selling EV by some margin last year. I think it will be our best-selling EV again this year. Next year, when we have the first full year of the EV2 alongside the EV3. I think the EV2 can give it a good run for its money.”
ZEV mandate trajectory questioned
Many manufacturers have recently said the UK Government should bring forward a planned review of its ZEV mandate, which requires an increasing percentage of manufacturers’ new car sales to be zero-emission each year, with potential fines for non-compliance. Despite Kia’s EV success, Philpott has given his support to these calls, particularly regarding the longer-term targets towards 2030.
He said: “We believe that we’re on track to achieve the target this year. Probably with the EV2 introduction, and growing sales of the EV3, EV4 and EV5, we will be on track for 2027.
“The period beyond that, when the targets go 52%, 68%, 80% over a three-year period, is a big risk. And I think that a recalibration of targets between now and 2035 is what we’ll be requesting.
“I think the end game is clear. Zero-emission vehicles are the future. EVs are the future. And by 2035, I think the 100% target is appropriate. Some smoothing of the increasing targets between now and 2035 is what is required.”
Philpott is more wholly enthusiastic about the UK Government’s Electric Car Grant, introduced last year, for which three Kia models are currently eligible at the £1,500 level – the EV3, the EV4, and the PV5 Passenger.
He said: “I think there are two things that hold people back from making the switch from combustion engines to EVs. One is the charging infrastructure, which is improving all the time, and secondly, the higher upfront costs, and the Electric Car Grant is an important element of bringing those upfront costs down, as well as us bringing out more accessible, more affordable EVs.
“I think the Government have strongly supported the industry’s requests for grants. They’ve put the mechanism in place, and we expect more of our EVs going forward to be eligible for the grant.”
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Sportage still number one for Kia
Despite Kia’s strong progress with EVs, it should be noted that the brand’s top-selling UK model remains the Sportage SUV, which is offered with petrol, hybrid and plug-in hybrid powertrains. According to Philpott, the model is set to remain an important part of Kia’s line-up into the next decade.
He said: “The Sportage has been our backbone for the last decade. We revised it in the third quarter of last year, and we’re seeing good levels of demand across retail and fleet buyers.
“At the moment, the Government requires us to stop selling any ICE cars by the end of 2029, and then stop selling hybrids and plug-in hybrids by 2035. Sportage will remain central to our brand for as long as we are allowed to sell it.”
One Kia model that’s not continuing in the UK is the Niro EV, which recently went off sale after seven years. The Niro remains available as a hybrid or plug-in hybrid.