Kia EV5 launches in Singapore

[SINGAPORE] The Kia EV5, an all-electric five-seat SUV, has officially launched in Singapore, marking the first Kia model assembled locally at the Hyundai Motor Group Innovation Centre (HMGICS) in the Jurong Innovation District. This model, previewed earlier at the Singapore Motorshow, comes in three variants, with two qualifying for Category A COEs due to lower power outputs, and one classified under Category B. Prices start at S$194,000 (including COE), with an operating range between 400 km and 540 km on a full charge.

The assembly process at HMGICS is highly automated, with about two-thirds of tasks handled by roughly 200 robots, allowing a full build in just seven hours. While the plant also assembles Hyundai Ioniq 5, Ioniq 6, and a robotaxi variant, only the robotaxi is exported; the Kia EV5 and other models are sold exclusively within Singapore. HMGICS began operations in 2023 with a reported capacity of up to 30,000 EVs annually, but actual production numbers are kept flexible to align with customer demand rather than pushing for volume.

Kia’s regional leadership views the EV5’s local launch as a milestone in its global electric strategy, with ambitions to sell 4.2 million EVs by 2030. In 2024, the brand delivered 3.1 million vehicles worldwide, covering both electric and combustion models. Meanwhile, Singapore’s EV market shows slow but steady growth, with 708 Hyundai EVs registered in 2024, slightly up from 693 the year before.

Implications

For businesses, Kia’s local assembly signals potential growth in Singapore’s EV ecosystem, offering opportunities for suppliers, service providers, and charging infrastructure partners. The highly automated setup could also spur innovation in manufacturing efficiency, potentially setting a regional benchmark for small-scale, high-tech production facilities.

Consumers in Singapore gain more localized options with reduced wait times and possibly better aftersales support, given the cars are built domestically. However, the high price point (starting nearly S$200,000) means the EV5 will likely remain a premium option, accessible mainly to affluent buyers or those prioritizing sustainability and cutting-edge technology.

From a public policy angle, the decision to limit assembly to domestic sales raises interesting questions about Singapore’s role in the regional EV landscape. While the country isn’t positioned as a mass-export hub, the focus on local demand aligns with government ambitions to accelerate EV adoption and reduce emissions, though its small market size limits broader regional impact.

What We Think

The Kia EV5’s launch in Singapore feels like a symbolic moment that mixes innovation, ambition, and market realities. “Achieving a large production volume isn’t our primary objective,” says Hyundai’s spokesperson — a reminder that this plant functions more as an innovation lab than a mass-production powerhouse. This approach may position Singapore as a testbed for next-generation mobility solutions, but it also caps its potential as a regional EV leader.

For consumers, while the technology and local assembly are impressive, the pricing puts these vehicles squarely in the premium segment, potentially limiting widespread adoption. Policymakers might want to consider incentives or support mechanisms to broaden access and capitalize on the domestic production advantage.

Overall, Kia’s move strengthens its global EV footprint and gives Singapore an innovative manufacturing feather in its cap. Yet, to truly move the needle, local industry players and regulators will need to turn this innovation hub into a scalable, sustainable model that serves not just the top tier of consumers but the broader market as well.