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Bruce Newton1 Jul 2022
NEWS

New Kia Niro sticker shock

All-new small electric SUV now more expensive than Tesla Model 3 and Kia EV6

The pure-electric version of the new 2022 Kia Niro small SUV is more expensive than Australia’s top-selling EV, the Tesla Model 3 sedan, and overlaps the pricing of its own big brother, the award-winning Kia EV6.

In a clear example of the price pressure facing the Aussie new-vehicle market, the second-generation SG2 Kia Niro hybrid and electric vehicle (there’s no plug-in hybrid powertrain this time round) rises in price by between $2710 and $6140.

The new Kia Niro does get some significant equipment increases, including the Aussie-first Kia Connect telematics system, to compensate for a pricing range that now starts at $44,380 (plus on-road costs) for the entry-level HEV and tops out at $72,100 plus ORCs for the flagship EV.

Kia Niro GT-Line EV

By comparison, the entry-level rear-wheel drive Tesla Model 3 retails for $63,900 plus ORCs. Kia’s cheapest EV6 Air RWD variant, meantime, costs $67,990 plus ORCs, but prices of the award-winning EV range are soon expected to rise.

At the same time, the new Kia Niro HEV is also more expensive than Australia’s most popular hybrid, the larger Toyota RAV4 Hybrid.

“There might be some sticker shock but let’s just see how it goes,” Kia Australia Chief Operating Officer Damien Meredith told carsales.

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“I don’t want to be the bearer of bad news but I think every manufacturer is under a heap of pressure in regards to their pricing strategies in Australia.”

Pricing for the Kia Niro is at the bottom of the story, including how much each model has gone up by.

The pricing structure means only the cheaper $62,590 Niro EV S qualifies for the $3000 NSW and Victorian government EV rebates and only then if Kia dealers don’t get too greedy on delivery charges.

Kia Niro GT-Line EV

As previously reported, there is no longer a PHEV version of the new Niro offered in Australia and the name of the top-spec model changes from Sport to GT-Line.

“Each [Kia] model that arrives in Australia is an individual [price] negotiation and with what is happening with production costs, raw materials costs, logistics costs, we were just in a situation where that was the best price we could get negotiated with Korea,” Meredith said.

Kia’s sales ambitions for the Niro are not dramatic. It expects to receive around 75 per mont, with sales split 60:40 in favour of the EV and 65:35 in favour of the GT-Line.

Kia Niro S HEV

“It’s the best we can do from a supply point of view and a pricing point of view, Meredith said.

Based on 1200 sales of the original DE Niro, Kia has found the five-door crossover has an audience among young people and retirees, and is bypassed by family buyers in the middle of the new-car market.

So why would they buy a Niro rather than an EV6 or a Model 3? Meredith says supply is one reason.

Kia Niro S HEV

“Do they want to go to the end of the line and wait over 12 months for an EV6?” he asked.

“Another variable is in regards to looking after the car; our seven-year warranty comes into the purchase. The whole process isn’t just about price.”

Stand by four our full product news story and first local drive review of the new Kia Niro.

How much does the 2022 Kia Niro cost?
S HEV – $44,380 (+$4390)
GT-Line HEV – $50,030 (+$6140 over Sport HEV)
S EV – $65,300 (+$2710)
GT-Line EV – $72,100 (+$6110 over Sport EV)
* All prices exclude on-road costs

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