Automotive News Europe — 2025-04-03
Automotive Industry
Kia aims to sell more electric vehicles in Europe as President Donald Trump’s auto tariffs and anti-EV policies cloud the outlook in the U.S.
The South Korean automaker plans to increase sales of EVs in the European Union to more than 60% of the region’s total by 2030, which is higher than the industry outlook of 54%, CEO Ho Sung Song said in an interview at the Seoul auto show on April 3.
The European Commission last month proposed giving automakers more time to reach stricter emissions rules after pressure from automakers including Volkswagen Group and Stellantis, and bring forward its review of a 2035 zero-emission target. However, Song said it would not be so easy to ditch the zero-emissions goal.
“I think the bloc is giving some time to help carmakers make investments and meet the goal,” he said. “To be honest, we can meet the bloc’s call for the window immediately.”
The pivot to Europe comes as Kia and other global automakers grapple with Trump’s 25% tariff on auto imports, which threatens to hit sales in one of Kia’s most important markets. Trump also vowed to eliminate EV incentives such as a $7,500 tax credit.
Kia and affiliate Hyundai sold around 1.7 million vehicles in the U.S. in 2024, with about 1 million of those imported, mostly from South Korea.
Kia plans to raise annual U.S. sales to about 1.2 million vehicles by around 2033, from about 800,000 in 2024, Song said.
“There is nothing much changed in U.S. emissions rules yet, and of course, there are some expectations that Trump may weaken the rules,” Song said. “But we really do not know what is going to happen after the next administration takes office in the U.S. There could be some changes and there could be some delays for a few years, but we are trying to go to the way we calculated initially.”
Hyundai Motor Group, which controls Hyundai, Kia, and the luxury Genesis marque, was not spared from Trump’s tariffs, even after last month announcing a $21 billion investment in the U.S. The group is planning to boost annual output to 1.2 million in the U.S., compared to about 700,000 vehicles made at plants in Alabama and Georgia last year.
Song declined to comment on whether Kia plans to raise prices in the U.S. to absorb the tariff hit. “But I think everyone is probably monitoring what other rivals are going to do about pricing strategy,” he said.
Hyundai CEO Jose Munoz told reporters at the show that the company does not have a plan to hike prices “at this moment.”
As part of its push into Europe, Song touted Kia’s new electric PV5 minivan in Barcelona in February. The van, which Kia calls a “purpose-built vehicle” will offer personalized mobility solutions, such as different interior designs that allow it to be used as a robotaxi or for delivering packages. Kia sees growing demand for minivans for wheelchair passengers, given that populations are aging, especially in Europe and Korea.