Low-cost, Premium Electric Vehicles Are the Next Frontier

Pricing has been revealed for a new flock of premium electric vehicles (EVs), and the winners are American buyers. The 2025 Volvo EX30 small SUV and 2024 Kia EV9 three-row SUV will arrive in market soon, poised to directly rival their mass market gasoline-powered counterparts, before any government incentives have been applied.

Traditionally, premium models are priced higher than mass market vehicles, but below the manufacturers suggested retail price (MSRP) of luxury cars and SUVs.

The Volvo EX30 is priced to start at $34,950 for the base trim level, single range version, and top out at $46,600 for the top-tier EX30 Ultra with two motors. There are five trim levels total, and two motor layout options. Each vehicle is subject to a $1,295 destination fee.

Kia has priced the new EV9 to compete as well. It starts at just $54,900 for the rear-wheel drive base model and $73,900 for the highest EV9 GT-Line with all-wheel drive. All models come with an additional $1,495 destination fee.

Competition is stiff for both models, but they win on pricing and range compared to other vehicles in their respective classes, and beyond.

The U.S. market is about to be rife with two-row electric SUVs that are larger than the EX30, but will still have few three-row-ers. The two-row, mid-size Nissan Ariya starts at a little over $43,000, but with far less all-electric range than the Volvo and Kia. Acura's new two-row ZDX SUV and its sporty ZDX Type S variant are expected to be between $60,000 and $70,000 when they come to market next year.

Jumping into the luxury space comes with a big price tag. Mercedes-Benz's EQE SUV starts at nearly $78,000 while the BMW iX is nearly $10,000 more off the bat. Both models can be found at dealers today at steep discounts.

The three-row Rivian R1S is the Kia's biggest competition, but its pricing starts where the EV9's tops out.

No other premium automaker currently offers an electric SUV to compete directly with the EX30 in the United States. The closest is the modestly sized Mercedes-Benz EQB small SUV, which starts at about the same price as the EV9.

"[When it comes to] cost reduction is there's no silver bullet," Jim Rowan, CEO of Volvo Cars told Newsweek at the debut of the EX30. "As you know, it's just hard work. Just detail and talking to suppliers, negotiating with suppliers making choices and having targets that you make you make sure the teams."

The exterior and interior design treatments of the Kia and Volvo are points of pride for their respective automakers, exceeding their price point in quality, technology and styling. "As the industry shifts to EVs, automakers need to refocus efforts in different areas than before. In a sense, EVs are an equalizer—performance is more readily available for everyone. A strong and emotional design, innovative interior execution, and how we interact with the vehicle are more important than ever to stand out," Paul Waatti, manager of industry analysis at AutoPacific, told Newsweek.

"Volvo and Kia have been remarkable in these respects and have successfully fit affordability into the equation simultaneously. Both automakers are turning out striking exterior designs with clean, uncluttered interiors and intuitive layouts. The premium interior materials are primarily emerging sustainable choices with exceptional craftsmanship," he said.

Volvo and Kia are betting big on their newest electric vehicles. Global rollouts of the models will bring their new definitions of premium to markets far and near.

"The Volvo EX30 and Kia EV9 are poised to be among the most compelling offerings in their respective segments," Waatti said, "In a world of expensive EVs compared to equivalent ICE products, seeing such promising products at more attainable price points—particularly EX30—is refreshing. These two products will inevitably pressure other OEMs to strike a better balance between internal combustion engine and EV pricing within lineups."