Kia Australia has wound back its annual sales target, conceding it won’t hit its previous forecast of 90,000 units in 2025.
Speaking with CarExpert at the launch of the new K4 Hatch and updated Stonic light SUV, Kia Australia chief operating officer Dennis Piccoli said changing market conditions and supply issues have hindered the Korean auto brand’s ability to achieve its ambitious sales target – which could have seen it finish third overall behind Toyota and Ford or Mazda.
“Most definitely, market conditions have changed,” Mr Piccoli said. “Product availability as well is still a bit of a restriction for us on some car lines – we definitely have back-orders on some car lines.”
“So I think we’ll show growth over last year, but it’ll be fairly modest at this point in time.”
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While not explicitly mentioned, underwhelming sales of the Tasman ute are also likely to blame. Despite previously anticipating 20,000 sales in the first 12 months on sale – which would have equated to around 10,000 extra units in 2025 – the Tasman hasn’t even notched up 4000 registrations across 4×2 and 4×4 models since landing in July.
Mr Piccoli noted that the Korean brand is satisfied with sales volumes of up-spec X-Line and X-Pro model variants, which are predominantly purchased by private buyers, though the company has “work to do” with the lower S, SX, and SX+ grades, including a more targeted assault on the fleet market.
“We can see where we’re missing out. [We] see how our X-series [X-Line, X-Pro] cars are going, and the price points they sit at, they’re going relatively well. We see a gap in the [entry-level] S range, we’re not getting our fair share there, where the other brands seem to be playing pretty well and getting a lot of volume,” Mr Piccoli said.
“That partially is due to the fleet content with Tasman is not where it needs to be, but that is coming together. I think what you’ll see with Tasman is there will be a hockey stick [in sales performance] through 2026, without a shadow of a doubt.”
You can read more about Kia Australia’s comments on the Tasman’s sales performance here.
Last year, Kia totalled 81,787 new registrations for the calendar year – up 7.4 per cent on the year prior, and enough for a fourth-place finish in the manufacturers’ sales race.
It beat out sister brand Hyundai (71,664) as well as Mitsubishi (74,547) by some margin, but fell short of Mazda (96,987) and Ford (100,170).
As of November 30, 2025, Kia has posted 76,004 registrations (up 0.7 per cent), which at this rate should see it retain fourth spot behind Toyota, Ford and Mazda, and ahead of Hyundai, Mitsubishi and GWM.
In addition to the Tasman’s slow start, the Korean brand has lost ground with its key volume drivers. The new K4 Sedan hasn’t matched the now-defunct Cerato small-car’s market performance, while the Sportage mid-size SUV is down 11.0 per cent year-to-date.
The all-electric EV6 is also down by 80 per cent ahead of a facelifted model arriving “imminently”, while demand for the popular Sorento large SUV has also slowed a bit (down 10.5 per cent).
New products in the pipeline could help improve Kia’s fortunes in 2026, with the Model 3-fighting Kia EV4 Fastback due in January, and the next-generation Seltos – likely with a hybrid option – due in the latter stages of next year.
The first single-cab/chassis versions of the Tasman will also arrive in local dealerships in January-February 2026, forming a key plank in the Korean brand’s assault on the fleet ute market.
Further, the Carnival people mover and Sorento SUV ranges have recently been revised to offer more electrified options across the range, with the Carnival Hybrid (HEV) now available across every trim level, while the Sorento has both HEV and PHEV powertrains from the base S through to the flagship GT-Line.
The K4 Hatch is now landing in dealerships in time for Christmas, and is expected to bolster the new small-car nameplate’s performance against the top-selling Toyota Corolla and Mazda 3 into the new year, given Australia’s preference for hatchbacks over sedans.
Stay tuned to CarExpert for all the latest, and let us know your thoughts in the comments below.
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