Too expensive! Kia Niro EV axed in Australia as cheaper and newer Kia EV3 and Kia EV5 bite into its sales
Kia’s trail-blazing Niro electric SUV has been axed in Australia.
Its hybrid sibling continues on for now, but is expected to be replaced by a petrol-electric version of the next-generation Seltos compact SUV due in Australia by 2027.
The first electric car launched by Kia in Australia, the Niro is paying the penalty for being priced too high compared to the brand new and similarly sized Kia EV3 compact SUV, which is now on sale.
The EV3 launches from $48,990 drive-away for the Air Standard Range entry-level model.
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The cheapest battery electric Niro is the S, priced at $66,590 plus on-road costs, while the GT-Line rises to $72,360.
The larger Kia EV5 EV launched last year also places pressure on the Niro as it is priced from $56,770 drive-away.
As reported by EV Central in 2024, the Niro’s future in Australia was under pressure once Kia Australia decided it was going to sharpen the pencil on EV5 and EV3 pricing.
Kia Australia boss Damien Meredith told EV Central at that time it was loath to reposition Niro on price and gut its resale value for existing customers.
Since then, the decision has been quietly made to end local sales of the Niro EV.
“The last production run was late last year,” confirmed Kia Australia product planning chief Roland Rivero.
“We still have some stock of the Niro left over and it’s still going as a hybrid.
“With EV3 coming the market has dictated, but there is still some hybrid demand out there in that smaller size beneath a [Kia] Sportage.”
The petrol-electric Niro Hybrid S starts at $45,000 plus ORCs and rises to $50,650 for the GT-Line.
Rivero suggested it is likely to be replaced by a hybrid version of the next-generation Seltos compact SUV, due by 2027.
“Maybe that [Niro hybrid] door will close also, particularly if a future Seltos might be offering a hybrid,” he said.
“We did say in the past there is no hybrid for the current generation Seltos, but we’re looking at it for the next generation.”
The first generation Niro launched late in its life in Australia in May 2021 as an EV, plug-in hybrid and hybrid.
The second generation Niro (pictured top) launched in Australia in July 2022. The PHEV was dropped from the range at that time.
Kia sold 1455 Niros in Australia in 2024 and 1826 in 2023. It was outsold both years by the larger and more expensive Kia EV6.
