Kia plans to fight falling EV resale prices in Australia with a new guaranteed future value program. New electric models, including the EV6 and Kia EV9, will be part of the plan.
Kia wants to boost EV resale value
Some of the earliest EVs in Australia have lost some of their battery capacity, which is believed to be dragging used-vehicle prices down.
Kia’s latest idea will help counter it. The new program, which will be introduced later this year, will guarantee future Kia EV values. According to CarsGuide, Kia is also working on cell-by-cell battery reconditioning. Together, it should help ease falling resale prices.
“We don’t have a Guaranteed Future Value on any of our products at this point in time, and that’s where we need to be,” Kia Australia CEO Damien Meredith said. He explained, “We’re working away,” but “there’s still plenty of work to do.”
Although the full details have yet to be revealed, Kia says it will only apply to new purchases. The program will not apply to existing EV owners and will be part of Kia’s new-car finance plan.
Kia is working with local partners for battery reconditioning to recharge driving range and energy capacity. According to the report, the automaker is asking for approval for the project from its South Korean headquarters.
Meredith explained, “We were out at a place that looks at fixing up EV batteries. So all those things are going to play a part.” He added that the process “effectively gets (the battery) back to new. Basically what we’re looking at is regeneration of the battery packs.”
Although Kia is working through it, Meredith said it will be a “bit of a slow burn” as it needs approval from HQ.
Kia is launching its new EV5 in Australia, joining the EV6 and EV9 as its third 100% electric vehicle.
After completing its first EV plant upgrade in South Korea last month, Kia is gearing up to build new entry-level EVs, including the EV3 and EV4.