NVES changes may see Kia fast track EV ute

KIA Australia may accelerate its program to get an electric ute to market, in light of market changes and the legislative adjustments to the new car market.

 

The brand had previously said that it would offer a diesel ute first – which is still about 12 months away – followed by a fully electric take on the ‘Tasman’ theme.

 

But with the New Vehicle Emissions Scheme playing on the minds of all OEMs, and the market shifting towards more electric and electrified utes coming to market sooner than the existing timeline, Kia Australia CEO Damien Meredith admits that the program may need to be rethought to accelerate the arrival of the EV ute.

 

“Well, nothing is off the table,” he said when asked if the NVES and market forces could push the brand to bring the EV ute earlier than forecast.

 

“Nothing, nothing whatsoever is off the table.”

 

Speaking on the current EV environment, and the push to include more electric vehicles to the line-up – including the EV5, a midsize SUV with an expected sub-$60,000 price point – Mr Meredith said the brand is always keeping an eye on the situation and will plan accordingly.

 

“I think circumstances are a bit different now from when we launched EV6 to when we (will) launch EV5. Different segments, different times,” he added.

 

“I think there is still a lot more homework to do... but what we are aiming for is that we still want to sell a spread of vehicles.

 

“We still want to sell Picanto, we still want to sell Cerato and the Cerato replacement (K4), and we want to expand our EV sales.

 

“We think we can do that. What we want to ensure is that: we can do it with as little effect on our customers regarding pricing; that as an organisation we are still profitable and that we do not have to pay a government penalty; and thirdly, we do not want to buy credits from other manufacturers.

 

“From a planning point of view... nothing is off the table. And (we have to) make sure that the mix of sales is right, so the credits outweigh the negatives. That is where we are at.

 

“Right now, from a planning point of view, we are looking pretty good.”

 

Kia Australia will have the EV5 joining its ranks from June 2024, possibly at the expense of the expensive Niro EV.

 

Alongside it will be the fully electric EV6 crossover SUV, and the EV9 seven-seater. The business also has hopes to add the EV3 compact electric SUV to its ranks in the coming years.

 

Mr Meredith admits that the uptake on the EV9 large SUV – the most expensive Kia to date – has not been as strong as predicted. Only 86 examples have been registered in the first two months of this year.

 

“Supply is a bit tight in some of the range, but we'd like to be selling more,” he said.

 

Kia Australia COO Dennis Piccoli said the mix of models is the key.

 

“In terms of availability on supply … (it is) a little bit under done in that Earth and Air mix, in that area,” he said.

 

“The top seller at the moment is GT-Line, but overall, we are a little bit underdone.

 

“If we look at the volume coming through, you can see that it is quite a bit patchy state to state, with products being caught up in various (dock) issues and stuff like that.

 

“It is starting to come through over the next couple of months and I think the numbers will start to improve.”

 

Mr Piccoli said he thinks the fact the EV9 Air has just won Drive Car of the Year, and the EV9 range won the World Car of the Year award, should help push sales up.

 

Kia Australia general manager of marketing Dean Norbiato said the EV9 is not just another Kia model in the range – its role is to reshape the perception of the brand more broadly.

 

“It is doing a job in more than just sales, so we are over-indexing in terms of communicating,” he said.