Affordability has always been a challenge for EVs. Just a few years ago, we thought that with battery prices falling, EVs would soon reach price parity with gas-powered cars. Battery supply proved to be more challenging than anticipated, and now we’re seeing the price of both EVs and their primitive cousins soar with inflation and insane dealer prices in 2022.
But that doesn’t mean automakers have completely forgotten about lower-income people and those who don’t think a car payment over $1000 is a great financial move (even if they can probably afford it). We see budget EV options starting to emerge, several with a 2023 release date.
Before I get into Kia’s missed opportunity to enter this market segment, let me talk about what else is alive in the under $30k new EV market.
Other budget EVs
I know Nissan fans think I should be talking about the LEAF in an article about fast-growing budget EVs, so I’ll get that out of the way first. I have one, and no matter how much you may love yours, I quite hate mine. It’s a great affordable option, but only if you live in a place with a mild or cold climate and don’t want to take long trips at rural US highway speeds. Even in warmer climates it can be fine as a city car.
But the lack of liquid battery cooling and lack of CCS charging will make the LEAF an option someone should only consider if they can get a bargain on it or a really good lease deal (which is both possible). Most upcoming Infrastructure Bill stations just won’t be able to charge the car, and that will lower its usefulness and value in the long run. The lack of liquid cooling will affect battery life, even though they’ve gotten a lot better since the 2011 models (I had one too).
The other problem is Nissan’s reputation for poor quality. It’s hard to screw up an EV, especially because of smaller parts, but Nissan’s petrol vehicles are known for their problems. I’ve seen a lot of problems outside of the battery and motor, including repeated CV joints issues, things like doors and door locks, and other junk.
So I think we should include the LEAF in this category, but only with those caveats and only with the understanding that it’s sort of a line between fuel-efficient EV and compliant car.
The other budget option out there is the Chevy Bolt EV and EUV. Not only did GM drops price to very affordable levels (under $30k) for 2023, but it also offers great incentives for the remaining 2022 models (which are currently in short supply). The Bolt has liquid cooling, generally better reliability, and GM is putting in much improved battery cells after the burn issues.
On the other hand, there are still some significant drawbacks to the Bolt family of vehicles. While they have liquid cooling and should be more durable than the Nissan packs, they are still limited to 55kW charging speeds. Compared to everything from Teslas to Volkswagens, that’s a generally very slow charging rate that will make the car less useful on road trips (but still better than the LEAF in many cases). It is therefore usually a city or regional car and not a road warrior.
One thing we should be seeing more of in this price range are plug-in hybrids, but they seem to be priced well north of $30k right now and even $40k in most cases. Cutting back on battery packs seems like a good way to cut costs while still providing an EV experience on most drives, but for some reason we don’t see much of that right now.
Kia refuses to participate in The Fray
A recent announcement from Kia shows us it’s passing up the opportunity to enter the realm of cheaper EVs. While the Kia Soul has very low prices in 2022, even by gas car standards, Kia has cut back on options and offers nothing but a single 4-cylinder engine.
Kia still offers four versions of the Soul: the LX, S, GT-Line and EX trim packages. There are important differences, such as interior comfort and electronics. But no matter which trim level you choose, you’ll get the same 2.0 liter inline four with 147 horsepower and 132 lb-ft of torque. In other words, it’s going to be an anemic little boxy car. The CVT transmission can improve this experience over an automatic in some ways, but you can’t even get a manual transmission (which would cut losses and improve the driving experience a bit for people who know how to drive it).
This is probably a cost-saving move. Previously, Kia offered both turbo and naturally aspirated options for this car, as well as an EV version. Like Nissan’s LEAF, the EV version had no liquid cooling, but cabin air was included in the cooling process to provide at least some cooling other than ambient air.
But battery supplies for the 64 kWh version of the 2020 Soul were hard to come by, and reportedly Kia would rather use batteries to sell the better and more expensive Niro EV† At first, the US version was only delayed, but then it was canceled altogether.
This may be good for Kia, but bad for the EV transition
I once had a neighbor who loved her Kia Soul EV. It did the job and gave her decent performance even in the Phoenix metro area. But it was an early car with 27 kWh battery storage, so it wasn’t as useful as the later 64 kWh version Europe got. So they are really two different cars for two very different uses. Kia has a limited battery supply, so it has to do the right thing for its shareholders and use those batteries for more profitable cars that it knows it will sell.
By not offering a cheaper car like other manufacturers, the transition to EVs will be slowed down. The new market is only part of what’s happening there, as these cars eventually make it onto the used market, helping those with even lower incomes or budget desires to consider an EV. The fewer manufacturers we actually see entering this space, the longer it will take for that to happen.
Featured image of Kia.
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