Why these Kia models are the hardest ones to sell

The new-car buying world might be increasingly looking towards more eco-friendly forms of motoring, with hybrid and electric cars in huge demand in Australia - but there’s one form of car that blends those forms of technology which isn’t doing great locally. 

Plug-in hybrid electric vehicles - PHEVs - are proving to be one of the hardest technologies for customers to understand, and Kia Australia chief operating officer Damien Meredith says the brand doesn’t see the benefit in trying to educate potential customers about how PHEV tech works.

The job is so hard that Kia won't sell the new-generation version of the Niro small SUV in PHEV spec - and the current model was the first PHEV to be sold in Australia by the brand.

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“I think it’s very hard to explain the features, advantages and benefits of PHEV. If you ask anyone on the street if they understand the benefits of a PHEV, I don't know if anyone can answer it,” said Mr Meredith.

For the uninitiated, a plug-in hybrid powertrain allows you to recharge from a powerpoint and run about 50-80 kilometres on EV power, before the petrol engine will kick in and take over. But the complicating factor is that you can run these cars purely in petrol mode (to help recharge the battery), or in a hybrid mode which runs petrol and battery power. In reality, based on real-world experience with these sorts of cars, the advantage is limited to those who can make use of a shorter EV driving range, and who are still open to having a petrol engine being lugged around, which inherently impacts the EV driving range because of the additional weight.

Kia Australia currently has two PHEV models on sale - the Niro small SUV, and the Sorento GT-Line seven-seater SUV. But come launch time for the new-gen Niro, the brand will only sell the hybrid and electric versions.

Mr Meredith said the decision to cut the PHEV version of the Niro was one based purely on economics.

“Toyota has told the hybrid story. Mitsubishi had the opportunity to tell the PHEV story. We’ve talked about that exact thing. It’s probably too expensive to tell the story, to get a return on you telling the story,” he said.

“I love the idea of PHEV and what it does. I don’t think it’s going to be successful in the future in Australia.

“It’s just a tough technology to become mainstream, if I can put it that way.”

Kia Australia general manager of product planning, Roland Rivero, said the brand has put everything in place to sell the Niro PHEV in the new-generation guise if the customer base demands it.

“We’ve homologated the Niro plug-in hybrid, and it’s up our sleeve. But at this point in time our plan is to launch with the hybrid, and the EV,” he said.

Other brands are just starting to get into the PHEV field. Ford recently launched the Escape PHEV, and Lexus launched the new NX SUV with a range-topping PHEV model, the NX 450h+, earlier in 2022.

We'll be driving the new-generation Niro in late June. Stay tuned for our coverage on the EV and HEV (hybrid) versions of the small SUV.