Kia Australia is setting its sights high for 2025, aiming to achieve a remarkable 90,000 vehicle sales, which would represent a 12.5% increase over its record-breaking performance in 2024.
This ambitious target comes on the heels of a successful year where Kia registered 81,787 new vehicles, marking a 7.4% increase from the previous year and solidifying its position as a key player in the Australian automotive market.
Sales Strategy Amid Market Challenges
During the launch of the new K4 small car, Kia Australia CEO Damien Meredith expressed confidence in the brand's strategy despite acknowledging potential challenges. “Our expectation is to do around 90,000 [sales] in 2025,” he stated. However, he cautioned that external factors such as the rising cost of living and the federal government’s New Vehicle Efficiency Standard (NVES) could impact this goal.“There are things outside our control,” Meredith noted, emphasizing that macroeconomic issues and geopolitical factors could influence consumer sentiment. Nevertheless, he remains optimistic about Kia’s plans to navigate these challenges effectively.
Key Drivers for Growth
A significant contributor to Kia’s growth in 2025 will be the introduction of the all-new Tasman dual-cab ute, marking the brand's entry into the competitive utility vehicle segment.
This model is anticipated to compete directly with Australia’s best-selling vehicle, the Ford Ranger. Kia has projected annual sales of around 20,000 units for the Tasman, which would provide a substantial boost to overall sales figures.In addition to the Tasman, Kia plans to enhance its lineup with several refreshed and new models slated for release in the second quarter of 2025:
- Facelifted Sportage: This popular mid-sized SUV is expected to attract buyers with its updated features and design.
- EV6 Large Electric SUV: Building on its success, the EV6 will continue to appeal to consumers looking for electric options.
- All-New EV3 Small Electric SUV: This model aims to expand Kia's electric offerings and cater to a growing demand for compact electric vehicles.
Electrification Initiatives
Kia is also poised for a significant push towards electrification in 2025. The brand recently showcased a fleet of 130 all-electric vehicles at the Australian Open tennis tournament—marking a first in its 24-year naming rights sponsorship of the event.
This fleet included models like the EV5, EV6, and EV9, along with hybrid versions of existing models such as the Sportage and Sorento.Product planning manager Roland Rivero hinted at an expanded availability of hybrid powertrains across various models throughout 2025. Currently limited to top-spec variants, hybrids will become more accessible as Kia prepares for stricter emissions regulations set to take effect on July 1, 2025.
Future Market Positioning
With an improved supply chain and a diverse range of hybrid and electric vehicles on offer, Kia is well-positioned to climb further up the ranks in Australia’s automotive market. The sales target of 90,000 units this year would bring Kia within striking distance of Mazda (95,987) and Ford (100,170), based on last year’s figures. Moreover, projections indicate that achieving 100,000 sales in 2026, especially with an electric version of the Tasman expected by then, could position Kia ahead of both brands.
As Kia Australia gears up for what it hopes will be another record-breaking year, the combination of new model introductions and an aggressive electrification strategy sets a promising stage for growth.
With strong leadership and a clear vision for expanding its lineup while addressing evolving consumer preferences towards sustainability, Kia aims not only to maintain but also enhance its competitive edge in Australia's automotive landscape.
