EV3: Why Kia is Selling Lower Priced EVs in the US

Kia has announced a new SUV EV, designed to be more affordable, coming to the US at the end of 2026. 

The EV industry in the US faces numerous challenges with the combined effects of tax credits expiring, tariffs on components and imported vehicles as well regulatory uncertainty and lower than expected sales.

In this environment, Kia is offering potential customers an incentive to switch by lowering the entry cost to EVs.

The EV3

The EV3 is available in five trim levels: Light, Wind, Land, GT-Line and GT. It delivers 10 to 80% DC fast charging in 29 minutes on light trim and is positioned competitively among affordable EVs.

Eric Watson, Kia America’s Vice President of Sales Operations, says: “The Kia EV3 represents a bold step forward in our commitment to making electric mobility accessible to more Americans.

“With its striking geometric design inspired by EV9, advanced technology and spacious interior, the EV3 brings the innovation of our EV line-up into an entry EV SUV tailored for the way US customers live, work and travel.”

The car is underpinned by Kia’s 400V E-GMP platform and offers a choice of two batteries: a standard-range 58.3 kWh battery (Light) or a long-range 81.4 kWh battery (Wind, Land, GT-Line, GT). The long-range battery offers an estimated range of 320 miles and the light offers an estimated 220 miles. The EV3 GT model outputs 288 horsepower. 

The car is embedded with a voice recognition AI assistant and includes several tech and connectivity features such as a 12-inch HUD, music streaming and Wi-Fi hotspot technology.

The US market

The higher gas prices have caused consumers interest in EVs to grow in 2026, with widely reported sales increases and search traffic spikes. 

According to data from Bloomberg NEF, US drivers will pay an additional US$1.65bn for gas, driven by the US and Israel's war on Iran, which has seen the closure of the Strait of Hormuz. The war has triggered the price of oil to rise above US$100 per barrel. 

This is the second global spike in gas prices in recent times, with oil previously being over US$100 per barrel when Russia invaded Ukraine in 2022. According to Bloomberg, sales of battery-powered machines surged by 66% that year.

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Kia’s sales and plan

Kia sold 238,000 EVs in 2025, up 18.9% from a year earlier. Across HEVs, PHEVs and EVs, Kia sold a total of 749,000 electrified vehicles, a 17.4% year on year increase.

Kia’s electrified models accounted for 24.2% of the company’s total sales, a 2.8% increase from 2024. The company's HEVs were in strong demand, with a total of 23.7% increase over the previous year's sales. 

Kia recorded its highest annual global sales of 3,135,873 units in 2025, a 1.5% increase year over year. The company’s operating profit margin stood at 8%.

In 2025, Kia’s operating profit totalled KR₩9.08tn (US$5.9bn), down 28.3% from 2024 with the company citing tariff impacts and higher incentives as key reasons for the drop. 

In 2026 the company says it plans to expand sales of electrified models in major markets, including North America, Europe and India.