Kia Canada Inc. is demonstrating its belief in the Canadian electric vehicle (EV) market by offering its EV5 in Canada as a North American exclusive, foregoing the larger U.S. market.

Called the “perfect model for the Canadian consumer” by Elias El-Achhab, vice president and chief operating officer of Kia Canada, the compact SUV is designed to meet the needs of Canadian drivers on size, features, feel and price, he said.

Unlike some of its competitors, the Korean company is coming off a strong year for EV sales in 2024. The Canadian branch, headquartered in Mississauga, doubled its deliveries of battery-powered cars from 2023 to 15,631, and electrified models including hybrid and plug-in-hybrid made up a quarter of its 86,657 sales in 2024.

Planned for a Q1 2026 launch, the EV5 will be the latest addition to the catalogue of EVs the automaker offers in Canada: Niro, EV6 and EV9.

Kia Canada expects the EV5 to become its top-selling model and to be sold in every province, El-Achhab said.

Why the EV5 will be Canada-only

Expected to be priced in the range for most compact SUVs, El-Achhab said the EV5 will not have a “massive premium” over a gas-powered equivalent.

It will offer two battery sizes to choose from: 60.3 and 81.4 kilowatt-hours. The range will be similar to the EV6 and EV9.

Car and Driver has reported the automaker will not be selling the EV5 in the U.S. because the Inflation Reduction Act’s US$7,500 incentive only applies to EVs assembled in North America. A Kia Canada spokesperson told Sustainable Biz Canada the manufacturing location will be announced closer to launch.

Kia 417, a dealership in the Ottawa region, also noted Canada’s EV incentives are more generous than the U.S. Plus, U.S. consumers prefer larger trucks and SUVs than Canadians, a factor confirmed by El-Achhab. Canada’s EV adoption rate was higher than the U.S. in 2024, according to S&P Global Mobility.

The decision to release a car only in Canada while excluding the U.S. and Mexico is not new, El-Achhab said. The Soul EV and the Rondo were also exclusive to the country because they did not meet the preferences of U.S. drivers on size or features.

Kia stays on the EV path

Canadian EV sales made a “huge increase” in 2024, El-Achhab said, challenging reports of slowing sales. The announcement of an upcoming pause on the federal EV rebate drove up demand, the vice president said, particularly at the tail end of 2024.

S&P Global Mobility said the zero-emission vehicle adoption rate reached a new milestone in Q3 2024 with a 16.5 per cent adoption rate.

“If we look at the overall trajectory, I think EVs are still the future in Canada, it’s still the way that the industry is going to go,” El-Achhab said. Though the rate of increase will ebb and flow, it is on a trajectory to “an inevitable future”.

However, he didn't want to offer any predictions about the timeline: “We just don’t know how long it’s going to take to get there.”

He attributed Kia’s upward EV sales to the addition of its EV9 and the “design language” of its cars resonating with Canadian consumers. Kia, he continued, is a long-time player in the EV industry and has refined a “superior EV product to what’s out there in the market right now.”

After the EV5, Kia plans to release the subcompact SUV EV3 for the Canadian market in the second half of 2026. The company also plans to offer more hybrids and plug-in hybrids.

Kia plans to continue on the path of electrification, El-Achhab said, a bet the automaker believes will “pay off for us in the long run.”