Kia has eye on Procee'd GT hatch for Australia

The three-door hot hatch, based on the new Cerato platform, is set for release in other countries - including the right-hand drive UK market - in the middle of this year.

But it is an important car for Kia Australia. It is the company's first sports car and though not expected to be a volume seller, would become Kia's new halo car. It also matches up against the $31,990 Veloster SR Turbo coupe from its parent company Hyundai. The Procee'd GT has a 150kW/265Nm 1.6-litre turbocharged petrol engine which it shares with the Veloster Turbo.

It is sharply styled by the design head of Kia and Hyundai, Peter Schreyer, and notably picks up cues from the Golf GTI with red taping to the grille, red brake calipers and Recaro sports seats. Kia Australia spokesman Kevin Hepworth says discussions about its future have been underway for some time with Kia Australia hopeful of a final decision soon. But he says if it does get the green light for Australia, it would likely come here only with a six-speed manual transmission.

Hepworth says there is not a “suitable” automatic at this stage, showing Kia isn't willing to bolt in the Hyundai dual-clutch six-cog box that is in the Veloster and may not think its six-speed conventional automatic is up to the task. Pricing for the hatch is critical. While Hepworth said it was far too early to discuss pricing, he did say that it would be "competitive" with others in the market.

The Hyundai Veloster with the hot engine is currently in the market for $32,000. That pricing is also about $2000 more expensive than the Toyota 86 coupe, $2000 less than the Mini Cooper and Opel Astra GTC, $6000 less than the Ford Focus ST and $8000 cheaper than the Golf GTI and Subaru WRX.

Two body versions - three door and five door - are offered in Europe but only one has room on the local market. The three-door makes more sense for Australia and may complement the 2103 model Cerato Koup that is due here later this year as a follow up to the sedan (April) and five-door hatch (July).

Unlike the Procee'd, the Cerato sedan, hatch and Koup are styled by Kia's US design team. But critically, Hepworth says all Kias get Austalian tuned suspension that is globally unique to the brand. The Koup is this year not expected to be offered with the hot 1.6-litre turbo engine. Kia expects the Procee'd to be highly equipped. It is believed to hit the UK market with standard leather upholstery, cruise control, rear parking camera, sat-nav, 18-inch alloy wheels and the Recaro seats.

It will also share in Kia's industry-crunching five-year unlimited warranty with five-year capped price service and roadside assist. Kia will first show the Procee'd GT and the five-door Ceed GT at the Geneva motor show next month. The three-door will be the first car in production, on sale in Europe as a right-hand drive around June but not as a five door until later in the year.