Kia Explores Smaller Electric Vehicle Market with EV1 Concept

Kia is actively considering the development of an even smaller electric vehicle, tentatively named the EV1, which would sit below its existing EV2 model. While the project has not yet received official approval, Kia aims to tap into the growing demand for compact electric cars in Europe, a market where it currently offers only the EV2.

The interest in smaller electric vehicles comes in response to a noticeable shift among European consumers who are increasingly seeking B-segment city cars that are both practical and affordable. The Renault 5 E-Tech achieved significant sales success in 2025, demonstrating the viability of this segment. As competition intensifies, Kia appears eager to diversify its offerings, particularly as other manufacturers are also eyeing this lucrative market.

Kia’s current lineup includes the EV2, which features a crossover design. The vehicle is equipped with an option for a long-range battery that provides up to 280 miles (approximately 450 km) on the WLTP test cycle. Although this range is impressive, it is likely more than necessary for a small city vehicle that is typically used for short urban trips.

David Hilbert, Kia’s European marketing director, confirmed to Autocar that the company is exploring the concept of an electric vehicle akin to the Picanto, a popular small car in the European market. He noted, “The whole industry is looking at how they make EVs more accessible. Of course, we’re doing that as well.” The naming of the EV2 suggests an intention to develop a smaller model, the EV1, which would feature a more compact battery to help lower its price point.

Kia’s partner, Hyundai, has already entered the urban electric vehicle market with the Inster, a model designed for city driving, measuring under four meters in length. However, the EV1 is expected to be distinct from the Inster, as the latter is an electric adaptation of the Korean-market Casper, which does not have a corresponding Kia variant.

As Kia evaluates the feasibility of the EV1, Hilbert indicated that the company remains committed to the A-segment, which includes the Picanto. He stated, “Longer-term, we continue to study the A-segment. [The] Picanto is still an important model for us, and we continue to have a very important sales volume from that.”

The automotive industry is closely monitoring upcoming regulations from the European Union regarding a new category for electric vehicles, known as E-cars. These regulations are anticipated to be finalized by the end of January 2024. Should Kia design the EV1 to comply with these guidelines, it could potentially reduce production costs by omitting certain active safety features, allowing for a more competitive pricing strategy.

As the market for small electric vehicles heats up, the Renault 5 currently stands as a leading option. However, it faces increasing competition from models such as the BYD Seagull, Leapmotor T03, Dacia Spring, and the Citroën ë-C3. The imminent launch of the Renault Twingo E-Tech and a new budget-friendly Dacia EV, alongside Hyundai’s rumored Ioniq 2, indicates that the segment’s landscape is rapidly evolving.

With major players like Volkswagen also preparing to introduce new models such as the ID. Polo and ID. Cross, Kia’s potential entry into this market with the EV1 could significantly impact its competitive positioning in the European electric vehicle sector. As the automotive landscape shifts towards electrification, Kia’s strategic choices will be crucial in determining its success in this increasingly crowded market.