Kia considering more PHEVs, but EVs and hybrids are satisfying Australia's emissions regulations

Kia Australia says it's not shutting the door on more plug-in hybrid (PHEV) models, but says its existing hybrid and electric vehicle (EV) lineup is keeping it in credit against the Federal Government's New Vehicle Efficiency Standard (NVES).

"We're always looking at more electrified and more green powertrains across all model lines with R&D... not just plug-in hybrids, but range-extender hybrid vehicles as well," said Raymond Pok, Kia Australia's senior manager for product planning.

"But from a current standpoint, we think our balance of having a strong EV product lineup and also now moving some internal combustion models into hybrid – like Seltos, you've seen the growth of Sportage Hybrid, Sorento Hybrid, Carnival Hybrid as well – we think it's the right mix.

"From an NVES perspective that mix for us is pretty important to make sure we sell enough EVs and enough hybrids and enough ICE [internal combustion-powered vehicles] to balance that and put us in a good good credit position.

"So nothing we we can confirm at this point in terms of any of those [powertrain types]. But they are definitely on our wishlist, and we look at it again from a model by model perspective as we get to milestones in the product life cycle, whether it's a [mid-life facelift], a full model change, or the like – we look at all the feasibility from from a powertrain perspective," Mr Pok added.

The Korean brand's local arm only sells one PHEV currently, the Sorento large SUV alongside its hybrid (HEV) and turbo-diesel versions. In the past it has also sold the first-generation Niro crossover as a PHEV alongside HEV and EV variants.

Globally, the current Sportage is available with a plug-in hybrid powertrain in other markets, namely North America and in Europe – though the European market gets a domestically made shorter-wheelbase body variant – and the second-gen Niro was previously available with a PHEV in other markets.

Kia Europe has also offered PHEV versions of its Ceed and Xceed, effectively the European arm's version of the previous Cerato. Otherwise, the brand's electrification efforts have been more focused on mild-hybrids in Europe, and battery electric vehicles more broadly.

Its parent company, Hyundai Motor Group, has also signalled its strategic shift to develop extended range electric vehicles (EREVs) starting with a version of the current Santa Fe SUV to commence production in 2027. Kia, however, is yet to confirm its first EREV at this time, though the popular Sorento SUV shares its underpinnings with said Santa Fe.

While Kia Australia certainly has opportunities to plug gaps in its lineup with PHEVs, local CEO Dennis Piccoli noted that the current positioning between Kia's hybrid and EV models makes it difficult to "squeeze" another powertrain option in between.

"If you were doing the modelling and looking to where opportunities lie, clearly the market is SUV at the moment, and whether it's medium or whether it's small, if you look at what we what we're presenting to market; whether it's Seltos at $39,000 or $46,000 for an EV3, or if we have a look at an EV5 and a Sportage, a Sportage is you know $44,500 or thereabouts, and then we're what $49,000 or thereabouts – there's not a there's not a huge room there to squeeze a plug-in hybrid," said Mr Piccoli.

"If the gap was more significant, then you could almost you could try and argue the case that 'okay, well, there's an opportunity there'. But this point, if the customer decides, do they want a a hybrid or whether they want an EV, then we can cater for the two."

"At the moment there's not not a huge gap there I think to squeeze a car in at that point," Mr Piccoli added.

PHEV sales continue to grow in Australia, largely off the back of a slew of new options from Chinese brands including BYD, the Chery Group, and Geely.

To the end of September, PHEV sales this year have grown by 124 per cent to 85,278 units with market share sitting at 8.9 per cent – though EVs (18.9 per cent) and hybrids (16.7 per cent) continue to enjoy greater market share.

Kia's top seller in 2026 by some margin is the Sportage mid-size SUV range with 14,327 registrations year to date. According to Kia's local director of marketing, Dean Norbiato, the Sportage Hybrid "has experienced the most growth of any hybrid SUV in the country".

During a Q&A at the Seltos press conference, Mr Piccoli indicated the brand hopes to average "pretty close to 1000" units per month of the new-generation hybrid SUV.

Stay tuned for our Australian first drive review of the new Seltos on Friday, November 6

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