Kia will start mass-producing its compact electric sports utility vehicle (SUV), the EV2, in Europe next year. The company plans to manufacture the vehicle at its Žilina plant in Slovakia, securing price competitiveness by avoiding the EU’s 10% import tariff through local production.
According to industry sources on the 2nd, Kia will begin producing the EV2 at its Žilina plant in the first half of next year. Kia unveiled the EV2 concept car in February and has since positioned it as a strategic compact electric SUV for the European market, accelerating development for mass production. Recently, a prototype was spotted during test drives on German roads, signaling an imminent launch.
The EV2 is a compact electric SUV featuring a boxy design inspired by the larger EV9 and equipped with the signature “Star Map” LED lighting. Based on the 400-volt E-GMP platform used in the EV3, it supports both lithium iron phosphate (LFP) and nickel-manganese-cobalt (NMC) batteries. The powertrain features a front-wheel-drive single-motor setup, prioritizing practicality and urban driving.
The expected selling price is around $30,500. Kia CEO Song Ho-sung previously mentioned this price point in an October interview with the British automotive magazine Autocar.
The industry expects Kia to enhance its price competitiveness in Europe’s increasingly competitive compact EV market by producing the EV2 locally and avoiding import tariffs. The EU imposes a standard 10% tariff on all imported vehicles. Local production will also allow Kia to meet eligibility for European EV subsidies, giving it an additional advantage in the market.
The Žilina plant, which has only produced internal combustion engine vehicles until now, is currently setting up a dedicated EV production line. Alongside the EV2, the plant is also expected to produce next-generation EVs like the EV3, EV4, and EV5.
Opened in 2007, Kia’s Žilina plant is one of its key European hubs, with an annual production capacity of 300,000 units. It has supported Kia’s expansion in Europe by manufacturing strategic models like the Ceed hatchback and the bestselling Sportage SUV. Last year, the plant completed facility upgrades for EV4 production.
An industry insider said, “With Chinese automakers introducing ultra-low-priced EVs in Europe, the price benchmark for compact EVs is continuously dropping. In this market, price competitiveness directly influences purchasing decisions, so cost reduction through local production will be a critical factor in boosting sales.”
