Kia ute and small SUV to drive 100,000 sales

Kia Motors Australia expects its first small SUV – due on sale by the end of this year -- to take its total annual sales figure to 80,000 vehicles, and its first ute to swell that number to 100,000.

That would put Kia among Australia’s five most popular brands including Toyota (217,061 sales in 2018), Mazda (111,280), Hyundai (94,187) and Mitsubishi (84,944).

KMAu chief operating officer Damien Meredith told carsales.com.au the ambitious sales target for Kia, which sold 58,815 cars in Australia last year, was contingent on the Korean brand’s first one-tonne pick-up, local timing for which remains fluid.

“We are still confident we can grow our sales and market share in Australia,” he said.

“50,000 [sales] by 2019 is covered. We think we can get to 80,000 with small SUV and 100,000 with ute. If we’re lucky it’ll be 2021.”

That timing is more upbeat than previously advised in mid-2018, when Meredith indicated that Kia’s first ute wouldn’t arrive until 2023; now he says the program is confirmed and that local details including availability will be known soon.

“Our GM of product is in Korea now,” he said. “Hopefully he comes back with good news. I haven’t driven it, but the guys have already told us there’s a codename so that means it’s locked in.”

Kia’s first direct rival for mainstream mid-size utilities like the Toyota HiLux and Ford Ranger – Australia’s two top-selling new vehicles last year – will follow the same dual-cab 4x4 diesel formula, and will be based on sister brand’s Hyundai’s first ute due in 2021.

“It’s no good bringing it to Australia if it can’t compete with HiLux and Ranger,” said Meredith. “It’s incredibly important to us.”

Also important to KMAu will be its first compact SUV, which we understand will break cover globally outside a motor show in July before arriving in local showrooms in the fourth quarter of 2019.

Codenamed SP2 and previewed by the SP Concept at India’s 2018 Auto Expo, the as-yet-unnamed small SUV will go by its global name when it arrives Down Under later this year.

Two versions will be produced: an India-specific model to be manufactured in India, and a Korean-made version that will be sold in Kia’s domestic market and other countries including Australia.

Kia’s first small SUV is expected to be priced between the new Cerato small car (from $19,990) and facelifted Sportage mid-size SUV (from $29,990).

Indeed, Kia Australia made room for its first direct rival for the Mazda CX-3 and Mitsubishi ASX when the upgraded 2018 Sportage was launched last year with a higher starting price.

“It will have a clear air,” said Meredith. “We haven’t done anything silly with Sportage so there’s plenty of space for it.”

Meredith has long been bullish about the potential of Kia’s first ute and small SUV in Australia, but this is the first time he has revealed sales targets for them.

Kia grew its Australian market share by five points last year to 5.1 per cent – double that of six years ago, when Toyota dominated the industry with close to 19 per cent, Holden still claimed almost 10 per cent and Mazda and Hyundai had a nine per cent slice.

If the market stayed around a million vehicles, 100,000 sales would see Kia rival Mazda and Hyundai for market share.

Although the Optima medium sedan is doomed, soon after Kia launches its first compact SUV in late 2019 the Korean brand will begin its local rollout of electric vehicles at the 2020 Australian Open tennis tournament next January, when the e-Niro and Soul EV will be launched.