Competitive EV Pricing Enters Markets Outside of China

Investment Analysis Clubs Macro Economic Trends and Risks
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Short term promotion:

Last month, Kia launched a new promotion, offering a $10,000 customer cash discount for all EVs, including the EV6, EV9, and Niro EV. The discount knocks nearly 25% off MSRP on Kia’s cheapest model, the Niro EV. On the entry-level EV6, it’s 23% off MSRP, while $10,000 off the EV9 is about an 18% discount.

The 2025 Kia Niro EV and EV6 are available to lease, starting at $209 and $309 per month for 24 months. The 2026 EV9 is listed with monthly leases starting at $419.

The new sales event comes after Hyundai extended its EV promotions, keeping the IONIQ 5 as one of the most affordable EV leases in the US, starting at just $189 per month.

https://electrek.co/2025/11/28/kia-slashes-ev-prices-new-10000-discount/
Although $10,000 is a pretty good deal, you might be better off financing. Kia is offering 0% APR for 72 months on all 2025 EV6 trims, plus an extra $2,500 financing bonus.

Tesla has officially launched new “Standard” trims for both the Model 3 and Model Y in Europe after launching them in North America. The automaker is aggressively positioning these stripped-down models to undercut competitors and arrest a painful sales slump in the region, with the Model 3 now starting at an impressive €36,990 in Germany.

This is a massive psychological breach of the €37,000 mark, putting it well within swinging distance of mass-market ICE vehicles and undercutting key electric rivals.

In the Nordic markets, the pricing is equally aggressive:

The Model Y also gets the “Standard” treatment. It is now listed at €39,990 in the main European markets.

The Competition

Volkswagen: The VW ID.3 Pure has recently seen price cuts bringing it to around €29,760 in Germany with bonuses, but the Model 3 offers significantly more range and space. The ID.4 Pure, a direct Model Y competitor, sits around €40,335 , making the Model Y Standard slightly cheaper and arguably better specced in terms of software and charging network.

BYD: The Chinese auto giant is Tesla’s main headache right now. The BYD Atto 3 is priced at €37,990 in Germany. The Model 3 Standard now undercuts it by €1,000, while the Model Y is only €2,000 more expensive for a much larger vehicle.

Volvo: The successful EX30 starts around €36,000–€39,000 depending on the market. Tesla could threaten the higher end of the demand for this one.

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Apparently customers aren’t beating the doors down for those EVs.

DB2

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they weren’t. How about now?

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EV sales worldwide in 2025:

a +32% bump in Europe, +22% bump in China, +4% in North America, and a big +48% bump in the “rest of the world.” Notably, this 23% global growth rate is higher than last year’s YTD growth rate, which was 22% at this time.

https://electrek.co/2025/11/12/ev-sales-still-have-not-fallen-cooled-slowed-or-slumped-media-is-lying-to-you/

Maybe it has something to do with oil & gas paying off the political leaders of the country, rather than the merits of the industry? Just a thought.

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Which is fine, but my question was that if demand growth is so robust why does Kia need to offer $10K off to move the EVs?

DB2

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Are the offering $10K off to move EVs or offering $10K off to move Kias?

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Well, the $10K deal is just on their EVs. By the way, Hyundai is offering a similar deal, presumably to make up for the missing Federal subsidies.

DB2

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I don’t know, why does WalMart have sales?

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clear inventory and/or gain market share

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Percentage growth is pretty squishy.

If you sell one in one year and you sell two the next, that’s a 100% growth that is not something to write home about.

If you sell one million in one year and you sell 1.2 million the next, that’s a 20% that you can take to the bank.

Don’t be fooled by magic numbers!

A magic number?

Maybe it’s the size of the installed base… :crystal_ball:

The Captain

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Kia n Hyundai are under the same auto group.

Perplexity says:
{ both are core parts of the larger Hyundai Motor Group conglomerate.}

:student:
ralph

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As much as I like the the Volkswagen ID.Buzz, its starting MSRP around $61,545 (incl. destination) puts it at nearly twice what you’d probably expect a minivan to cost if the last time you shopped for one was at a Dodge store. Still, that hefty price tag is some $20,000 higher than the baseline Toyota Sienna hybrid or Honda Odyssey.

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The answer is to stimulate demand (meaning demand is weak).

Automakers continue to offer high discounts on EV units to stimulate demand, with J.D. Power estimating that the average EV incentive was $11,869 in November.

DB2

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