

James Wong
2 Months Ago
Deputy News Editor
Kia has confirmed it’s planning an affordable city-sized electric car – even smaller than the 2026 Kia EV2 already announced – and much would be a direct competitor to the BYD Seagull, Dacia Spring and Fiat 500e.
Speaking to UK publication Autocar, Kia president and CEO Ho Sung Song said a cheaper, smaller electric city car, which could be called the EV1, was “homework” for the company’s product developers, confirming such a car was “one area we are studying and developing”.
Mr Song also said affordable, city-sized cars would remain an important part of the brand’s lineup as European buyers move towards EVs.
Kia technically already offers a city-sized EV – the Picanto-based Ray – but this tall, boxy model is exclusive to Korea.
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The new city EV would take over from Kia’s entry-level petrol-powered Picanto – currently Australia’s cheapest new car – which was significantly updated in 2023 and still sells strongly in Europe.
With a replacement still as far off as 2028-2029, the Picanto’s successor could well ditch the current version’s 1.2-litre four-cylinder petrol engine to become a battery-electric city hatch.
It would face the BYD Seagull, set to go on sale in the United Kingdom later this year as the Dolphin Surf, at less than £20,000 ($41,874).
The Seagull is under consideration for Australian showrooms and could become the cheapest EV offered here, given it would sit below the current price leader – the BYD Dolphin electric hatch at $29,990 drive-away.
Even then, the current petrol Picanto could remain on sale alongside a newer, electric offering in Kia showrooms.
Other brands have also planned this approach, such as Volkswagen, which intends to sell the petrol-powered Golf alongside battery-electric versions well into next decade.
Kia has been prolific in rolling out new EVs. Its smallest, the funky EV2 five-door SUV, is due on sale overseas in 2026 but is unlikely to be offered here.
The Kia EV4 electric sedan – a Tesla Model 3 rival – is scheduled to arrive in Australia in the last quarter (October-December) of 2025, joining the EV3, EV5, EV6 and EV9 electric Kias currently in Australian showrooms.
The EV5 has been Kia Australia’s most popular EV so far in 2025 and the fourth-most popular EV overall, with 2765 delivered to the end of June – putting it behind the third-place Model 3 with the MG 4 behind in fifth.
Mr Song said Europe will “drive volume from a full EV lineup” because of a “strong trend” towards electric cars – yet internal combustion engines will remain important in emerging markets lacking electric-charging infrastructure.
It will also enable Kia to maintain a flexible approach to respond to market trends when necessary.
“The final destination in Europe is EVs, which is why I want to be a very strong EV player in Europe… but if we look at worldwide demand we should have alternative powertrains, like hybrids, plug-in [hybrids] and EREVs [extended-range electric vehicles],” he said.
Sales of hybrids in Australia in the first six months of 2025 increased 14.9 per cent, following a 76 per cent jump in popularity in 2024, while key markets – including China and the United States – have also seen significant hybrid growth.
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Damion Smy is an automotive journalist with several decades of experience, having worked for titles including Car and Auto Express magazines in the UK, and Wheels and Motor magazines in Australia.
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