Kia may drop Niro from local line-up

KIA Australia is about to launch a new electric SUV that will be bigger, more affordable and better equipped than the Niro EV.

 

As a result, the Niro could be discontinued in our market very soon.

 

At a preview event for the new Kia EV5 – a Chinese-built mid-size SUV that could start at less than $60,000 when it arrives here in June – the brand’s senior executives confirmed that the launch of this mainstream model could see the end of the road for the Niro EV.

 

The Niro is made in South Korea, and because of our place on the pecking order of factory supply, has been rather uncompetitive in its pricing for our market. The Niro is priced from $66,590 + ORC for the base model S, and $72,360 + ORC for the flagship GT-Line.

 

In the past, Kia Australia CEO Damien Meredith has stood by the pricing and positioning of the Niro EV, stating it was “doing its job” for the brand in Australia. But he now admits now that the potential for the EV5, especially with fleet buyers, is something that cannot be underestimated.

 

“I think Niro has done an amazing job to be honest, but whether or not it is one for the future, time will tell,” he said.

 

Kia Australia general manager of product planning Roland Rivero also suggested that the addition of the more practical and appealing EV5 mid-size SUV could see the Niro’s role change in our market.

 

“The combination of Sportage Hybrid, plus the EV5 … most of the customers are leaning in that direction,” he said.

 

“Then there are some question marks about long-term longevity.

 

“But having said that – particularly for our fleet team with Niro in this generation – it has done incredibly well, far better than I could have assumed it would have.”

 

The company has not outright stated that it will axe the electric Niro, nor has there been any commitment to continue selling it as a hybrid-only offer.

 

But it stands to reason that its future is being weighed up and a decision is imminent.

 

Mr Rivero suggested that vehicle sourcing and market forces are what has limited the car’s success to relatively modest levels.

 

“I think Niro is a good example of when you have to share with Europe, you’re not going to win,” he said.

 

“The lion’s share of supply goes to Europe and, obviously given the supply is limited, the pricing is commensurate as well.

 

“So, with EV5 coming out of China, it has benefited us substantially. We have got a head start on Europe – which will get their allocation about a year later – and supply is good.”

 

The brand has confirmed it will aim to sell up to 10,000 examples of the EV5 each year. The electric SUV will be offered in front- and all-wheel drive configurations, with two battery range options and three trim grades available.

 

Kia’s Niro sales have been slower in 2024, with just 253 examples of the mixed hybrid/EV range registered in the first two months of the year – almost 15 per cent lower than this time last year.

 

Compare that with its nearest full-EV competitor in terms of size, the BYD Atto 3 which starts from $48,011+ ORC, and there have been 1176 examples moved in the same two-month period.