Kia Australia reveals plans for ‘25

KIA AUSTRALIA hosted a pre-Christmas 2024 lunch for the motoring media in Sydney with the company’s top executives available to answer a range of questions.

 

They took the opportunity to reinforce their optimism for the upcoming Tasman ute that has received what could be termed a luke-warm reception from some quarters regarding its styling and powertrain.

 

Other Kia issues were discussed but most interest was understandably on Tasman on several fronts including model line-up, powertrains, styling, pricing, and sales volume.

 

We already know the Tasman will be offered in 4x2 and 4x4 model lines, with a mix of single-cab-chassis, dual-cab-chassis, and dual-cab pick-up body styles offered, but no space-cab/extra-cab model, as the market is too small, says Kia.

 

According to a Kia spokesman, a Genesis-sourced 3.0-litre straight six-cylinder turbo diesel engine has been mentioned as a possibility in the future as has a 1.6-litre petrol hybrid powertrain lifted from existing Kia models, but in the meantime, the Tasman gets the venerable 2.2-litre turbo-diesel four-cylinder engine.

 

From around the table discussions, it was obvious Kia Australia is mindful of the popularity of flagship competitor vehicles that have more powerful engines and a sportier specification but is concentrating now on getting the Tasman up and running.

 

Kia Australia executive consensus at the lunch was that staying with a four cylinder is sufficient for Tasman as it offers dependability and should be considered a tool of trade (rather than a show pony).

 

While Kia Australia CEO Damien Meredith focused on the broader picture, the task of putting a positive spin on Tasman due to go on sale mid 2025 fell to marketing boss Dean Norbiato who said interest in the ute was building with the vehicle’s website receiving about 60 expressions of interest per day.

 

Kia has gone on record saying it has intentions of selling 20,000 Tasmans this year with approximately 50 per cent of those likely to head to fleets and business customers.

 

In a GoAuto report late last year, a Kia spokesman said, “Customers in these categories are invariably, less concerned about whether they like the look of a vehicle as opposed to whether it will do the job it is expected to do”.

 

At the lunch Mr Norbiato was first cab off the rank saying, “Interest in the Tasman post launch (introduction) from a pre-order and customer response point of view is steady with just under 20,000 pre-orders and expressions of interest in hand at the moment (as at the end December 2024).

 

“Obviously, from a launch standpoint and from a narrative perspective, you’re all aware of the commentary around launch from an aesthetic standpoint, but we’re really starting to see a narrative shift in terms of opinion with a lot of people … the more time they see it and spend with it,” he continued.

 

“We are seeing a separation in opinion from the initial launch. We’ve done some customer research as well.

 

“We had a weeklong research piece with the Tasman, and in terms of the feedback, we feel that we’re confident, from a position of overall sales volume targets with that model and the product and the specification, that we’re in a good position.

 

“So yeah, really confident with the Tasman and the expressions of interest that, like I said, continue to rise post launch,” he added.

 

However, Mr Norbiato wouldn’t be drawn when asked by GoAuto about how many expressions of interest he thought would convert into actual sales.

 

“Yeah, it’s tough to say. I mean, each model is different,” he responded.

 

“We’ve had a really high expression of interest on EV9. However, from a pricing standpoint, it was probably out of a few people’s targets whereas EV 5 has converted exceptionally well.

 

“I can’t give you a percentage, unfortunately, on that (Tasman sales) sorry, but looking at the Tasman in terms of people who have invested an expression of interest without seeing the vehicle, now they’ve seen it … and we expect that to only increase as it gets close to an on sale date,” he stated.

 

When pressed on the expected conversion number Mr Norbiato said, “People’s perceptions are changing over time, there are only photographs at the moment and from what we’ve seen of people who have physically seen it in the flesh they seem to have a different opinion from those who have only seen an image of the vehicle”.

 

“It’s on us as a business to get them all in the market and to get people familiar with the design because it is boxy and it’s big and the interior in particular is a strong point,” he emphasised.

 

In relation to who is looking at Tasman, Mr Norbiato said the percentage split now is overwhelmingly private buyers and not fleet buyers which doesn’t conform to Kia’s expected sales mix.

 

“But it’s starting to grow in the fleet space, especially as our fleet team get more involved,” he said.

 

In related information, Mr Meredith chimed in and said expressions of interest in the large EV9 SUV/People Mover didn’t necessarily convert to sales.

 

“That car is our number one vehicle in terms of leads generated to the key website, so it really is our halo vehicle and we’re confident of doing a tremendous job with regard to that,” he added.

 

“You’ve got to take into consideration the size of that segment.”

 

GoAuto asked if it will compromise sales of the popular and cheaper Carnival, but Mr Meredith said that “relative to the opportunity I think it’s not really going to be a compromise having Carnival there as well”.

 

“I think they are probably two different markets, and I think the advantage is you have a choice with the EV,” he continued.

 

“You know, we could have started with EV3. That could have been our first car. We could have built up to EV9 but the effect was we started with EV6 and we are telling a technology story and I think in the long term that’ll play to our advantage with EV3, and EV5, and potentially EV4 and EV9.

 

But according to Kia Australia COO Dennis Piccoli, “EV sales are a struggle, and I think we have reached the early adoption limit”.

 

“The cost of living will likely impact sales in 2025, but Kia’s value strategy will see us bring more hybrids to market in 2025 and we have great expectations for the EV5,” he said.

 

“We have the right product portfolio but can’t comment on speculation surrounding an electric Tasman.

 

“The EV3 is due soon joining the K4 sedan that will be here in January followed by an EV6 update and a facelift of the Sportage in April.”

 

Mr Piccoli said Kia Australia “desired” a Seltos hybrid and that the company “will adopt a value-added strategy rather than cut prices.

 

“For now, the Stonic stays,” he concluded.