KIA to Strengthen Sales of Electric Models

The Hungarian market for new electric passenger cars (EVs) is not expected to see the same dynamic growth this year as last year, while the segment's share of total sales, at around 7%, continues to lag behind the European average. However, EVs could account for 12-13% of KIA's sales, according to Norbert Nagy, president of KIA Hungary, speaking to MTI.

According to the head of the South Korean brand's Hungarian importer, the segment appears to be largely driven by the government subsidy program: 85-90% of electric cars put on the market are purchased by companies, and the driving force behind this is the subsidy system.

Norbert Nagy recalled that last year the domestic EV market grew by almost 50%, but in the first half of this year, growth barely exceeded 12%. At the same time, growth in the overall new passenger car market also slowed, reaching 13% in 2024 and only 4.3% so far this year, according to data from the Hungarian Vehicle Importers Association.

KIA models are among the leaders in the electric segment, said Norbert Nagy, who has high hopes for the recently launched EV4 in addition to the successful EV3 model. He expects 900-950 electric vehicles to be registered this year, with a total of 1,200-1,300 cars sold, including other electrified (hybrid and plug-in hybrid) models. Total annual sales, including internal combustion models, could reach 7,300-7,400 units.

According to the president, the 5-6% increase compared to last year's results is based on models with a good price-performance ratio. Norbert Nagy pointed out that all manufacturers are engaged in a model offensive, but at the same time, they have to face competition from Chinese brands appearing on the European market one after another.

In the new situation, traditional European manufacturers are losing ground, but these manufacturers are also taking customers away from KIA, he added. Nevertheless, KIA considers it realistic to remain among the top five brands in the Hungarian new car market in the longer term.

The KIA brand currently has 29 sales outlets and 32 specialist service centers in Hungary, with its newest dealership opening in Kaposvár at the beginning of July.