The ute market has peaked in Australia, and some new and established workhorses could struggle.
Kia Australia Chief Executive Officer Damien Meredith said the ute market appears to have peaked, with a flat result in quarter one this year showing growth will be tough to find.
That spells bad news for the Kia Tasman, which was launched last year with a sales target of 20,000 per year. It is on track to sell less than 5000 in 2026, which is a a far cry from the segment-leading Ford Ranger and strong-selling Toyota HiLux and BYD Shark 6.
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Meredith said “of course” they were concerned about the Tasman’s performance.
When quizzed if the Tasman would be here in three years if sales didn’t improve, he simply said: “I believe so”.
The Tasman ute has been critically acclaimed for how it performs its duties, but Meredith said there were several issues holding back the new ute.
“I think once you’re inside it, it's fantastic,” said Meredith.
“I think you know the exterior of the car is very polarising. Some people love it, some people don’t. And that’s had an effect.
“I think you’ve got to be upfront and honest that the competition that’s out there is quite dramatic.
“When we were planning this six years ago, the competition wasn’t as great as what it is right now.
“So did we plan correctly? We planned as well as we possibly could, but the competition is hot, and there’s a polarising look to the vehicle,” he said.
Kia is currently the third best-selling car brand in the nation this year, but it acknowledges it needs to do more to get the Tasman in more hands.
“We’ve fallen short. We know the facts,” said Meredith.
“What’s happening in the world over the last 35-40 days hasn’t helped. But we can’t use that, we can’t use anything as an excuse.
“The fact of the matter is we’ve got to make Tasman a better success in Australia than it is at its current level,” said.
A facelift to give the Tasman more conventional styling is still at more than a year or two away, according to CarsGuide’s previous reports, but there are other levers the brand can use.
Kia is a volume seller, so some sharp discounts might be on offer for the dual-cab ute in the coming months to help stimulate demand and attract fleet buyers.
Kia’s headquarters has been canvassing Australian owners on how to improve the product.
The Korean brand also revealed plans for a plug-in hybrid dual-cab ute for the US market, which could be a possible replacement for the slow-selling Tasman.
Meredith said they have their hand up for all types of powertrains in the brand’s global armoury.
"We're open to everything, but first and foremost we've got to make what we've got a success."