Take that Tesla! Kia EV5 pricing undercuts top-selling Model Y by thousands, setting the scene for a brutal mid-sized electric SUV battle

October 11, 2024October 19, 2024 Toby Hagon 9082 Views EV5, Kia

The Kia EV5 will tackle the Tesla Model Y head on with pricing that undercuts the top-seller by thousands of dollars.

The all-new mid-sized SUV will be priced from $56,770 drive-away (or $57,770 drive-away in Western Australia), which is about $4000 less than the Model Y (prices vary from state to state).

Whereas mid-sized rivals from the likes of Ford, Toyota, Subaru and Skoda have arrived with premium pricing that has resulted in modest sales to date, Kia is clearly out for Tesla blood with its EV5.

It helps that the EV5 uses BYD-sourced lithium-ferrous phosphate (LFP) batteries that are believed to be cheaper to manufacturer than the more common nickel manganese cobalt (NMC) batteries commonplace on European and American EVs.

Kia EV5 Earth — The Kia EV5 will be priced from $56,770 drive-away

The EV5 is also sourced from China rather than Kia’s home base of Korea, further sharpening pricing through low cost manufacturing.

That $56,770 drive-away entry level price is for the EV5 Air with a 64.2kWh battery claimed to provide 400km of WLTP range.

Step up to the larger 88.1kWh battery – badged as Long Range – and the price jumps to $61,170 before on-road costs, or $63,990 ($64,990 for WA) drive-away.

That makes it about $3000 more expensive than the entry-level Model Y Rear-Wheel Drive, although the 555km of WLTP range is a full 100km more than the Tesla.

Both EV5 Air models are powered by a 160kW/310Nm motor driving the front wheels.

Standard equipment includes dual 12.3-inch digital displays with a 5-inch display in between dedicated to ventilation controls.

There’s also Kia Connect remote connectivity and 18-inch wheels.

Step up to the EV5 Earth ($64,770 plus on-road costs or $68,990 drive-away, or another $1000 for WA) and you get a rear motor for all-wheel drive, but the claimed range drops to 500km. Combined outputs jump to 230kW and 480Nm and the car rides on 19-inch alloys.

The top-of-the-range EV GT-Line gets unique exterior design features, including 20-inch alloys and available two-tone paint.

The GT-Line gets the same dual-motor system from the Earth and sells from $71,770 plus on-road costs or $75,990 drive-away ($77,990 in WA).

It picks up more standard gear, including augmented reality head-up display, remote parking and heated and cooled storage.

The more aggressive tyres reduce the range of the GT-Line to 470km.

The Kia EV5 is seen as one of the most serious contenders to tackle the sales might of the Tesla Model Y, which in the first nine months of 2024 accounted for 16,697 sales. In 2023 Tesla shifted 28,769 Model Ys.

Kia has previously said it wants to sell about 10,000 EV5s annually.

Most rivals are on track to sell a fraction of that. The top selling brand in the country, Toyota, only plans to sell about 1500 bZ4X electric SUVs in the first 12 months. The bZ4X is priced from $66,000 plus on-road costs.