Kia is discontinuing the Niro EV for the 2027 U.S. lineup and replacing it with the EV3, a new affordable electric vehicle [1, 2].

This transition signals a strategic pivot by the automaker to lower the barrier to entry for electric vehicle ownership. By replacing an existing model with a more cost-effective alternative, Kia aims to capture a broader segment of the consumer market as electrification becomes more mainstream.

The new EV3 is expected to go on sale later this year, likely in July or August [1]. According to Electrek, the vehicle will feature a starting price of under $40,000, specifically listed as $39,999 [1].

This move is part of a larger push toward electrification across the company's portfolio. The shift includes the introduction of other specialized electric models to diversify their offerings in North America. For instance, the PV5 electric van is scheduled for launch following its introduction in Europe and South Korea in late 2026 [3].

Kia is focusing on the U.S. and Canada for these rollouts as it seeks to compete with other affordable EV options [1, 3]. The retirement of the Niro EV allows the company to streamline its production and focus on the newer EV3 architecture, which is designed to be more accessible to budget-conscious buyers [1, 2].

Industry observers said that the timing of the EV3 launch is critical as consumer demand for electric vehicles continues to evolve. The company is positioning the EV3 as the primary entry point for new EV adopters who previously found the Niro EV or higher-end models too expensive [1, 2].

“Kia kills off Niro EV for 2027 as the EV3 steps in Starting at under $40,”

Kia's decision to axe the Niro EV in favor of the EV3 reflects a broader industry trend where manufacturers are moving away from converting internal combustion platforms to purpose-built, affordable electric architectures. By targeting a sub-$40,000 price point, Kia is attempting to bridge the gap between luxury EVs and the mass market, which is essential for achieving long-term electrification targets in the North American market.