Kia Australia Revises Sales Targets for EV5 Amidst Cooling EV Market

Kia Australia has scaled back its initial ambitious sales targets for the upcoming EV5, just ahead of the electric SUV’s official showroom debut. Originally aiming for 10,000 annual units, Kia now projects a more modest 4800 EV5 sales per year, averaging 400 units per month.

This adjustment reflects the current realities of the Australian electric vehicle (EV) market, which has seen a stagnation in demand. According to Kia Australia CEO Damien Meredith, “the way the market is” necessitated the brand’s recalibrated expectations.

For context, Tesla’s Model Y remains a strong player in the Australian EV market, with 16,697 units sold by the end of September 2024, averaging around 1855 sales per month. Despite these numbers, Tesla has experienced a 19.08% reduction in sales year-to-date, underscoring the broader trend of cooling demand for EVs in Australia.

Kia initially set a goal of importing 850 EV5 units per month, with hopes of competing against models like the BYD Atto 3, which averaged 920 monthly deliveries last year. However, Meredith acknowledges that the original target of 10,000 units annually is no longer realistic, given the state of the market.

“We’d [now] be looking at around 400 a month. That’s coming back significantly, but I think it’ll be realistic about the market, so that’s where we are,” he said.

Despite the reduction in targets, Meredith remains optimistic. While he acknowledges that the changing demand for EVs is “challenging,” he does not see it as a major concern for Kia’s long-term strategy. “There’s no question about that. We have to look at all the variables out there in play in regards to NVES [New Vehicle Efficiency Standard], competition, and what we want to do as a brand in regards to our global plan,” Meredith explained.

Kia’s decision to revise its EV5 targets mirrors broader trends in the global EV market. Earlier this month, Stellantis extended its production halt on the Fiat 500e, citing weak demand for the model globally. Similarly, several European automakers have walked back their plans to switch to fully electric model lineups, facing challenges in the transition to EVs.

Still, Kia Australia remains poised to adapt to market shifts. Meredith emphasized that if demand for the EV5 increases, Kia is prepared to meet it. “I don’t think that’ll be a huge problem, [especially with] the way things are going globally,” he noted.

As the electric vehicle market evolves, Kia Australia’s revised approach to the EV5 demonstrates a pragmatic response to fluctuating demand, ensuring the brand remains competitive while navigating the complexities of the global EV landscape.