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Kia Scraps GT1 Development Amid Changing Market Tides

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Kia Stinger successor model GT1
In the end, is development canceled?
Consumer enthusiasm for electric vehicles has cooled

There have been rumors of the cancellation of the GT1, a high-performance electric sedan that Kia was developing as a successor to the Stinger. According to industry sources, Kia has canceled the GT1 project. Previously, it was reported that Kia is developing a large electric sedan, GT1 (code name), to launch in 2026. Kia’s new car schedule even included the production schedule for the GT1.

It was reported that it would be produced at Kia’s Hwaseong 3rd plant in South Korea starting in 2026 and that the model name would likely be EV8. Still, Kia suddenly canceled development ahead of production. Kia’s decision is believed to be due to a slowdown in electric vehicle sales.

Expected Kia GT1 / YouTube channel New York Mammoth
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The growth rate fell by half
Tesla also cuts workforce

According to a report by market research firm SNE Research, global electric vehicle sales in 2024 are expected to reach 16.412 million units, a growth rate of 16.6%. This is half of the 2023 growth rate of 33.5%. As the downturn in the electric vehicle market has become a fait accompli, even Tesla, the number one company in the electric vehicle industry, has begun a massive workforce reduction of up to 10% globally.

As the electric vehicle market outlook is not bright, Tesla has started developing Model 2, a low-cost electric vehicle expected to cost around $20,000. Kia also announced the expansion of its entry-level electric vehicle lineup by accelerating the development of EV3 and EV4. Due to the economic recession and high interest rates, automakers are changing their electric vehicle development direction to develop entry-level models.

KoreanCarBlog
Kia’s New Vehicle Production Schedule / KoreanCarBlog

Cancelled GT1 Performance
High Price Range Expected

Looking at the GT1’s specifications through previously leaked data, it is equipped with a battery pack with a capacity of 113.2 kWh, the largest in Kia’s history. It aims to drive 700 to 800 km (435 to 500 miles) on a single charge. In addition, it was planned to be equipped with a dual motor system that would produce a total output of 612 horsepower, with 272 horsepower for the front wheels and 340 horsepower for the rear wheels.

The price range was expected to be relatively high as it was expected to be competitive with high-end brands’ E-segment vehicles (large vehicles). As the demand for high-performance electric vehicles is limited, Kia appears to have made a skeptical judgment about the success of GT1. Nevertheless, consumers seem to be disappointed.

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KoreanCarBlog

High Expectations for EVs
Hybrids are becoming a trend

This is because it was expected to have the highest performance among South Korean-made vehicles. It was scheduled to be built based on the eM platform, Hyundai Motor Group’s next-generation architecture. Hyundai Motor Group previously announced that the eM platform would offer a driving range of more than 50% longer than the current E-GMP platform. With its performance and convenience, the GT1 was expected to continue Kia’s lineage of high-performance models.

In the end, with the development of GT1 canceled, Kia is expected to focus on developing entry-level electric vehicles and hybrids. This is because hybrid sales are showing strong growth again due to the slowdown in the electric vehicle market. Attention is being paid to how Kia will revise its strategy in the future in response to changing market trends.

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