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Future models - KiaKia bets on small car resurgence with new BEVsKia Australia commits to more BEVs in bet NVES will shift Australians to smaller cars5 Aug 2025 By TOM BAKER KIA Australia is set to make substantial changes to its long-term product planning, perceiving that Australia’s New Vehicle Emissions Standard (NVES) will jointly see buyers move back to smaller cars while seeing battery electric vehicles (BEVs) win out, despite an interim surge in hybrid powertrains.
Immediate changes to Kia Australia’s strategies include confirming the EV2 for Australia, reversing its prior decision not to bring the Slovakian-built, BEV light SUV to this market.
Kia Australia executives are even investigating whether to bring the forthcoming, entry-level EV1 to Australia to fight Chinese BEVs, while a hatchback version of the segment-straddling EV4 passenger car is back on the menu after being doubted previously.
The cheapest BEV models Kia sells locally are the Korean-made EV3 small SUV (from $47,600 plus on-road costs) and China-built EV5 midsize SUV (from $56,770 + ORC). The new plan should allow Kia Australia to bring its BEV cost of entry down into the high $30,000 range.
Relative success of the EV5, which has drawn unexpectedly strong interest from fleet operators, was a factor in Kia Australia’s change of heart on broadening the BEV line-up.
However, NVES was the main driving force, with Kia Australia having completed additional modelling on its need to generate emissions credits to avoid costly financial penalties, while also allowing the diesel Tasman ute to sell strongly.
Kia Australia chief executive officer Damien Meredith told GoAuto that the Korean brand would import “an array of BEVs that are more applicable to what is happening” in a bid to raise its BEV sales proportion from the current level of 11 per cent.
“I think smaller, more efficient vehicles will play a huge part in metropolitan Australia,” Mr Meredith said. “There is metropolitan and there is rural Australia. Sometimes, their needs and wants are not the same.”
Attaining sufficient NVES credits, which will be generated mainly by the sale of BEVs and PHEVs, will be key to offsetting the CO2 emissions of the Tasman, which will not be available with a hybrid drivetrain for some years.
Kia Australia’s senior leadership team has theorised that NVES will lead to a resurgence in small, frugal cars on city roads (with BEV powertrains), charged by domestic solar power in many cases, while provincial Australians keep buying utes.
That picture will only fully emerge around 2028, Kia Australia believes, with a passing renewal of hybrid powertrain demand set to occur in the meantime – which Kia will meet by expanding its PHEV and HEV trim grades on key models.
“With NVES doing what it is planned to do … our products like Seltos and Sportage (will become) strictly hybrid, alongside strictly BEV product. That is going to be the natural progression,” Kia Australia general manager of product planning Roland Rivero told GoAuto.
Availability of HEV variants for Kia’s top-selling SUV, the midsize Sportage, recently expanded and a plan is in place to reduce the cost of entry to Kia’s HEV line-up further in future.
While Kia Australia is less bullish regarding PHEVs than some other manufacturers, it is also understood to be working on plans to increase supply of PHEV units (such as in the Sorento large SUV) in order to bring down the price.
Meanwhile, Mr Rivero explained that while Kia’s early BEV plays involved halo vehicles – the slower-selling EV6 and EV9 models – Kia Australia will increase its focus on cheaper and admittedly less sophisticated BEVs at lower prices.
That will see Kia follow its EV5 precedent. Though there is no plan to source another BEV from China alongside the EV5, 400-volt platforms and front-drive basis will become the order of the day.
“The EV5 formula and value proposition is being appreciated. Initially, we thought it would only be private, but fleets are latching onto the EV5. We have had a couple of months where we have sold 700,” Mr Rivero said.
“Keeping on that path will mean some sacrifices, like an 800-volt architecture. I think the products to come that are targeting more volume will do so.”
The exigency of launching BEV models that Australian customers will demand en masse, giving Kia Australia sufficient NVES credits to protect the Tasman, meant that previous objections to sourcing Kias from Europe due to high costs evaporated.
“Mexico (which supplies the K4 petrol sedan) is just as difficult as (Slovakia),” Mr Rivero said. “Luckily, from an EV perspective (it is) free trade. If it was an ICE product out of Slovakia, it would he highly unlikely.
“Given a couple of things – our desire to grow our NVES credits, and also to offer a broader range of EV product, Slovakia is no longer off the cards,” Mr Rivero said.
While Kia Australia’s BEV concentration will shift to the more affordable end of the spectrum, it still plans to cater to higher-end customers. A facelifted, upgraded version of the EV6 lands in Australia shortly, while a high-performance EV9 GT super-SUV is still expected before Christmas.  Read moreAll future models Alfa Romeo Abarth Audi Aston Martin BMW Bentley Chrysler Chevrolet Dodge Citroen Ferrari DS Ford Fiat FPV Foton Haval Great Wall Honda Holden Hyundai HSV Isuzu Infiniti Jaguar Iveco Kia Jeep Land Rover Lamborghini Maserati Lexus McLaren Mazda MG Mercedes-Benz Mitsubishi Mini Opel Nissan Porsche Peugeot Ram Proton Rolls-Royce Renault Skoda Saab SsangYong Smart Suzuki Subaru Toyota Tesla Volvo VolkswagenMotor industry news GoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events. |
Click to shareKia modelsResearch Kia All future modelsAlfa RomeoAbarthAudiAston MartinBMWBentleyChryslerChevroletDodgeCitroenFerrariDSFordFiatFPVFotonHavalGreat WallHondaHoldenHyundaiHSVIsuzuInfinitiJaguarIvecoKiaJeepLand RoverLamborghiniMaseratiLexusMcLarenMazdaMGMercedes-BenzMitsubishiMiniOpelNissanPorschePeugeotRamProtonRolls-RoyceRenaultSkodaSaabSsangYongSmartSuzukiSubaruToyotaTeslaVolvoVolkswagenMotor industry newsGoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events. |
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