Kia Australia wants to sell as many as 5,000 electric utes a year by the end of the decade, as it looks to sell an EV in every segment locally in coming years.
The carmaker does not currently have a ute on its menu in any market, and it is now well-known it plans to rectify this in a bid to compete with segment leaders such as Toyota and Ford.
As a new entrant to that segment it thinks it has an opportunity to claim 10% slice of total ute market locally. With a global target of selling 25% electric vehicles in every segment by 2030 in mind,that means as many as 5,000 Kia electric utes a year could be rolling onto the tarmac in Australia.
But it says it can only reach its target if minimum EV sales numbers are legislated.
In an address to automotive media on Thursday, Kia Australia COO Damien Meredith laid down a clear view of the local arm of Kia’s ambitions to transition to electric car sales as Australia aims for net-zero emissions by 2030.
With transport accounting for almost 20% of Australia’s emissions, the struggle for carmakers however has been convincing overseas HQ to supply more than a few hundred EVs at a time to the local market. Bound by legislation in Europe, the US and other markets, carmakers are forced to prioiritise electric inventory to achieve carbon reduction targets.
But Meredith says it is time for the “country, the government and manufacturers to be cohesive in what we can achieve over the next decade.”
“We’ve got to be very positive about electrification and what it brings to the consumer, what it brings to the country, and what it brings to the environment,” he said to media on Thursday.
The comments come as federal Labor minister for energy Chris Bowen opened the door at the National Press Club on Wednesday for legislated emissions limits to match overseas rules, saying that the new Albanese government would consider “all viable options” to expand support for electric vehicles.
Kia has only been able to secure 600 of its EV6 electric crossovers for 2022. It is on the cusp of releasing its new Niro EV and hybrid but can only guarantee 450 of these combined for the remaining six months of the year, and expects to sell a 60/40 mix of the electrified SUV.
Meredith says Kia Australia would like to get more, but currently hands are tied.
Speaking with The Driven, Meredith said: “We’ve already spoken to the head office about getting more vehicles in. But I think if I can use the example of Western Europe, …. they’ve put a lot of energies into getting EVs into Western Europe, because there’s a penalty if you are above a CO2 limit.”
Falling short of cementing support for Europe-style emissions rules (the FCAI, which Kia is a member of, wants to push through its own weaker voluntary vehicle emissions standards), he said, “I think that if the (federal) government can put into legislation that … a certain number that has to be met by a certain time, I think that’s going to help us get more get more vehicles into the country.”
Legislating minimum numbers of electric vehicles would not stop carmakers from introducing more ICE vehicles, however.
It is highly questionable that minimum sales numbers would be enough to reduce transport-related greenhouse gases, particularly if the goal is to sell four times as many combustion engine units.
As The Driven reported in February, the IEA reported that although EV sales have taken off in recent years, any carbon reduction gains have been offset by sales of large SUVs (and particularly in Australia, utes.)
But that kind of support would allow Kia to introduce a greater range of EVs, says Meredith. And, key to that would be the electric ute promised by Kia CEO Song Ho-Sung.
“I would be confident that with the amount of EV models that we can bring into the country, we can get some in at relatively competitive prices right through (all segments) in the years to come,” said Meredith.
He said Kia expects to introduce an electric ute by 2024-2025, with the possibility of being able to pull 2.5 tonnes at the very least, in a 4×4 and 4×2 configuration, and features like V2L that are already available in the EV6 and the upcoming Niro EV.
“I can guarantee if we do it, it’s going to be done correctly,” he said.
Bridie Schmidt is associate editor for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018, and has a keen interest in the role that zero-emissions transport has to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is co-organiser of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model Y and has it available for hire on evee.com.au.