Fear not, diesel dual-cab drivers: Kia doubles-down on diesel in Australia for the long-term even as NVES looms

The impending demise of diesel in Australia has been greatly exaggerated, at least according to Kia executives, who insist diesel engines have "got a lot of mileage left in our country."

That's the word from Kia's local product planning chief, Roland Rivero, who said the Kia Tasman will stick with a diesel engine for the foreseeable future.

The news comes as Kia's global plans for an electric version of the Tasman appear to have slowed down, but also as 2.5-litre petrol-hybrid version of the brand's new ute appear to firm.

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Mr Rivero said the impending New Vehicle Efficiency Standard, or NVES, which will kick off from the new year, won't necessarily spell the end of diesel in the booming dual-cab space.

In fact, the product planning executive suggested the NVES program might not survive a new government unchanged, and that too much downward pressure on ute sales could result in fines being eased.

"There' are lots of rumours that things are coming to an end. It's hard to predict at this point in time, (but) I think diesel's still got a lot of mileage left in our country in the commercial space and definitely in the light commercial space. And I wouldn't rule it out just yet," he said.

"Even under NVES, things can change. We don't know what future governments may do, and there's still a lever that can be pulled in terms of the hundred-dollars-per-gram-of-CO2 penalty.

"That's ultimately the lever that can still be played with for future governments. So I think it's very, very opaque."

If the NVES remains unchanged, and the fines are too much to absorb, Kia has a secret Tasman weapon waiting in the wings, with the company working on an all-new 2.5-litre petrol-hybrid engine that is a favourite to appear in the new ute.

The 2.5-litre engine in question would appear to be the group’s new turbo-petrol hybrid, scheduled for production in 2025 in Korea’s Hwaseong plant. Asked if the 2.5-litre hybrid was the favourite to power the electrified Tasman, Mr Rivero said “that would make sense”.

“It's a modular platform, and can cater to multiple powertrains. And over the course of the lifecycle we will look at other options to ensure that it remains desirable and competitive in the marketplace,” he said.

“(The hybrid) is not from the get-go, and it's not lined up at this very point in time. But again, we've got a 10-year life cycle and we can continue to evolve the Tasman.”