Kia Corp. launched production of its EV4 electric sedan at its Slovakia plant on Aug. 20, marking the South Korean automaker’s first Europe-built electric vehicle as trade barriers create new competitive dynamics in the global auto market.
The five-door hatchback, built on Hyundai Motor Group’s E-GMP platform, represents a €108 million ($118 million) investment to retool the Žilina facility. Kia expects to sell 160,000 EV4 units annually, with half destined for European markets, according to company statements.
The timing reflects broader strategic shifts as automakers navigate rising trade tensions. Chinese electric vehicles face European Union tariffs of up to 45.3 percent since October 2024, while Hyundai Motor Group is simultaneously expanding U.S. production to sidestep Trump administration tariffs of 25 percent on auto imports.
Kia’s European market share slipped from 4.1 percent to 4 percent in the first half of 2025, according to industry data. The company faces intensifying competition from established European brands and Chinese manufacturers like BYD, which despite tariffs can still maintain profits in Europe with a 30 percent levy, according to Rhodium Group calculations.
The EV4 offers two battery options: 58.3kWh and 81.4kWh variants, with the larger providing up to 391 miles of range. Production begins as the industry grapples with whether localizing manufacturing can offset the structural advantages that helped Chinese competitors capture significant European market share through subsidized production and vertical integration.
