Best-selling car brand AXES flagship EV after just 3 years as cheaper & newer model bites chunk out of sales
A BEST-selling car brand has axed a flagship EV after just three years.
Now a newer, cheaper model has taken a chunk out of its sales.
Kia is axing the Niro EV, its first electric model in Australia.
The Kia Niro first arrived in Australia in 2021, considerably late to the party, and despite an update in 2022, it failed to keep up with competitors such as Tesla.
Drop in sales
Since its launch, its total sales accumulated to 5,795 units.
In 2022, sales reached 1,826 units, while in 2023, they dropped to 1,455 units.
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For a brand as successful as South Korean giant Kia this is quite the set back.
Meanwhile, the Niro Hybrid accounted for 45 per cent of 2024's sales.
Shift in preference
The sales figures revealed a shift in Australian preference to petrol-electric vehicles.
It also reflected less of a need for standalone hybrid models like Niro, considering hybrid power is becoming a standard feature across Kia models.
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Some of its hybrid best-selling models include:
- Sportage Hybrid
- Sorento Hybrid
- Carnival Hybrid
- Upcoming Seltos Hybrid
An evolving lineup
Another reason for the Niro EV's phase-out is Kia's evolving lineup.
The introduction of the larger EV5 SUV last year, with more space and a lower price than the Niro EV, signalled trouble for the ageing model.
Then came the EV3 which launched last month with a price nearly $20,000 lower than the Niro EV.
Roland Rivero, head of product at Kia said: “We’ve stopped Niro EV production-wise.
“There’s still a little bit of supply in dealer land, but that’s it.”
As for the Niro Hybrid, Kia hasn't hit the brakes on it just yet.
While its future is uncertain, especially with the next-generation Seltos SUV set to adopt hybrid technology.
Should this happen, the hybrid Niro could also be phased out within the next 18 months.
Overly priced
Another nail in Niro's coffin was its pricing.
For example, the Tesla Model Y, the top-selling EV in Australia markets for $58,900.
Meanwhile the Kia EV3 GT-Line sells for $63,950.
With a price tag of $66,590, it's the Niro EV S.
For a less technologically advanced and considerable smaller EV model, the Niro is a hard sell.
On the hybrid side, the Niro Hybrid S, selling for $45,000, was barely cheaper than the larger and more powerful Sportage SX Hybrid at $45,950.
This made the latter a more attractive option.
A new vision
The Niro will continue to be available in UK markets where it has a strong following.
The same goes for the US, where the EV3 has yet to launch.
However, in Australia, Kia's focus is clear: bring in more competitive EVs and hybrids and phase out under performing models,
It comes after another popular car brand announced the axing of a vehicle that has been loved for nearly 30 years.
Ford is waving goodbye to its beloved Focus in November, as reported by.
The move was first announced in 2022, but Ford's head of Europe Martin Sander doubled down on the decision this month.
Meanwhile, a major car firm has revealed potential plans to revive a beloved discontinued model as a "hot" EV.
Peugeot is reportedly making plans to bring back a new, electrified avatar of its much-loved hatchback, the 208 GTi.
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Top boss Alain Favey said the new 208GTi EV would likely be a performance variant of the e-208.
Favey said: "I am very eager to connect the Peugeot brand with what it stands for to its past, to its heritage in every sense."