Kia Niro EV Discontinued in Australia: What’s Next?

It’s the end of the road for Kia’s first fully electric model in Australia. The Kia Niro EV, which marked the brand’s entry into the electric vehicle (EV) market, has been officially discontinued less than four years after its local debut. While this news might not come as a huge surprise to industry insiders, it signals Kia’s shifting strategy towards more competitive and affordable EV offerings Down Under, suc has the recently launched Kia EV3.

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The Rise and Fall of the Niro EV

The Kia Niro first arrived in Australia in 2021, already late to the party, considering its first-generation model launched overseas in 2016. Despite an update in 2022, the Niro struggled to find a strong foothold in an increasingly competitive market. The numbers tell the story:

• 2023 Sales: 1,826 units
• 2024 Sales: 1,455 units
• Total Sales Since Launch: 5,795 units (across hybrid, plug-in hybrid, and EV variants)

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For a brand as successful as Kia, these figures aren’t exactly headline-grabbing. The Niro Hybrid accounted for 45% of last year’s sales, showing that Australians still leaned towards petrol-electric options. Meanwhile, the Niro EV faced stiff competition from larger, more advanced, and more affordable alternatives like Tesla and a wave of well-equipped Chinese EVs.

Why Is Kia Dropping the Niro EV?

A key factor in the Niro EV’s phase-out is Kia’s evolving lineup. The introduction of the larger EV5 SUV last year, with more space and a lower price than the Niro EV, signaled trouble for the aging model. Then came the EV3, which launched last month with a price nearly $20,000 lower than the Niro EV. That was the final nail in the coffin.

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“We’ve stopped Niro EV production-wise,” said Kia Australia’s head of product, Roland Rivero. “There’s still a little bit of supply in dealer land, but that’s it.”

As for the Niro Hybrid, Kia hasn’t pulled the plug just yet. However, its future is uncertain, particularly with the next-generation Seltos SUV expected to adopt hybrid technology. If that happens, the hybrid Niro could also be phased out within the next 18 months.

The Bigger Picture: Kia’s Hybrid and EV Strategy

The Niro may have been Kia’s first serious step into electrification, but it’s far from the last. Over the years, Kia has expanded hybrid technology across its best-selling models, including:

• Sportage Hybrid
• Sorento Hybrid
• Carnival Hybrid
• Upcoming Seltos Hybrid

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With hybrid power becoming a standard feature across Kia’s mainstream models, the need for a standalone hybrid model like the Niro has significantly diminished.

Price Wars: Where Does the Niro Fit?

One of the biggest issues for the Niro EV was its pricing mismatch. Consider this:

• Niro EV S: $66,590
• Kia EV3 GT-Line: $63,950
• Tesla Model Y (top-selling EV in Australia): $58,900

For an EV that was smaller and less technologically advanced than its newer rivals, the Niro EV became a hard sell. On the hybrid side, the Niro Hybrid S ($45,000) was barely cheaper than the larger and more powerful Sportage SX Hybrid ($45,950), making the latter a more attractive option.

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What Happens Next?

Internationally, the Niro will continue to be available in markets like the UK, where it has a strong following, and the US, where the EV3 has yet to launch. In Australia, however, Kia’s focus is clear: bring in more competitive EVs and hybrids, phase out underperforming models, and position itself strongly for the future.

The Niro EV’s exit doesn’t mark the end of Kia’s electrification journey, it’s just a change in focus. The question is, will Australian buyers embrace Kia’s new strategy? With more affordable EV options now available, and hybrids becoming mainstream, it looks like they already are.

Stay tuned, because Kia’s next moves could reshape the Australian EV landscape once again.

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