Kia outlines diverse powertrain strategy

Hybrids and PHEVs important, but battery electric remains the main game for the Korean brand

Kia says its diversified powertrain line-up has given it a critical advantage in staying agile and meeting consumer demand in a changing and unpredictable EV market.

The brand still has pure battery-electric vehicles as its prime focus, something that means it’s unlikely to follow rival Toyota down the hybrid-heavy route.

Local CEO Damien Meredith says being able to respond to changing demand has been advantageous recently, as EV interest has cooled and hybrids have boomed.

“Our range is broad,” he said. “We’ve got ICE [internal combustion engines], we’ve got EV, we’ve got PHEV [plug-in hybrid EVs] and we’ve got hybrid.”

Meredith welcomed the certainty provided by the recent federal election that saw Labor win emphatically, in turn cementing its plan to continue with strict CO2 emissions regulations as part of the New Vehicle Efficiency Standard (NVES).

“We’re happy that there’s certainty within the government,” said Meredith, adding that he was still “pretty confident that we won’t be paying penalties”.

Kia’s broad mix of powertrains has become something of a strategic buffer at a time when public sentiment around EVs is proving volatile.

“If you look at what occurred over the last six weeks in this country, sentiment can change very quickly,” said Meredith.

Kia believes having internal combustion, electrified, and fully electric models allows it to adjust more swiftly than brands committed to a narrower approach.

“Having that broad range of product puts us in a good position with the consumer,” said Meredith. “Our model line-up gives us a great opportunity to be quick and nimble.”

But while Kia and Toyota both tout a broad portfolio of powertrains, the two companies diverge when it comes to hybrids.

In 2024 Toyota converted many of its on-road models to hybrid only, including the Yaris, Yaris Cross, Corolla, Corolla Cross, RAV4 and Kluger.

Meredith says there are no plans for Kia to follow suit, with the brand instead pursuing what Meredith calls “an electric base strategy” – in line with its global directive.

“For us to be saying that we’re talking about a hybrid strategy goes against the global direction,” he said. “Our strategy is based on what they want us to do globally and that’s an electric strategy. We’re committed to a plan which is an electric base strategy.”

While Toyota dominates hybrid sales in Australia – accounting for nearly 80 per cent of all hybrid vehicles sold in 2024 – it’s off the pace with full battery-electric vehicles; its only EV, the bZ4X, is one of the brand’s slowest selling models.

That said, Toyota’s hybrid focus has helped it continue to dominate sales, the brand accounting for over 20 per cent of all sales.

But Kia believes it is well positioned for long-term success. While hybrids remain part of its local line-up – including the Sportage, Sorento, Niro and Carnival – the company is also ready to pounce when EV demand picks up again.

“EVs … may bounce back,” he said. “We’ve got to be prepared for that.”

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au