Kia’s new compact SUV ‘must be right’ for Australia

Kia’s hotly-anticipated compact SUV has been confirmed as a wish-list item for the brand's stakeholders in Australia -- but only if it suits buyer tastes.

The Korean car-maker is yet to formalise production of the new model, circulating as a road-going reality of the Provo concept SUV shown in 2013, however, motoring.com.au has obtained spy shots of it undergoing testing, pointing to a third-quarter 2017 release in Australia.

It is understood the as-yet unnamed production model will be underpinned by the latest Rio light-car platform, which gives a rough indication of its size and positioning. Hyundai is also said to be working on an equivalent ‘CUV’ which will likewise contest Mazda’s CX-3, Honda’s HR-V and Holden's Trax.

The development of Kia’s new model is underlined by sustainable growth across the small SUV segment. According to the official figures from the Federal Chamber of Automotive Industries this week, the sector has grown 3.3 per cent year-on-year -- a fraction of the growth achieved by medium SUVs, but provifing a possible insight to the CUV segment’s sales potential with more offerings available.

Despite this, the Provo is no shoo-in for Australia just yet. With many of Kia’s international engine and transmission combinations predicated on Europe’s strict tax laws, there is every chance Provo may materialise as a sub-1.0-litre engine offering only, limiting its appeal in markets such as Australia.

Without confirming the new model, Kia Australia communications general manager Kevin Hepworth said the philosophy of such as vehicle needed to fit with Australian needs -- namely, with a slightly larger-capacity engine option.

“We definitely want a car in that segment but it has to be the right car,” he said.

“There’s no point struggling along with a car that’s not suited for your market. Sometimes you have to make a hard decision in favour of a longer-term goal.”

Sister company Hyundai, meanwhile, inadvertently disclosed development of a corresponding CUV to motoring.com.au while ruling out Australian production for the Santa Cruz ute recently. Like the Kia, the Hyundai is also expected to materialise in the second half of 2017.

“We haven't researched the possibilities of the [Santa Cruz] here and I'm not sure it'll be a priority given the new products we have coming next year, including the new i30 and new small SUV,” Hyundai spokesman Bill Thomas said.

- With Marton Pettendy