- Kia's new Seltos goes hybrid for the first time in the model's history.
- New powertrain also brings a new e-AWD dual motor system to some markets.
- New Seltos looks likely to land in New Zealand before the end of the year.
Kia is making a strategic move with the introduction of a hybrid powertrain in its new Seltos, signalling a nuanced approach to electrification amidst evolving global market demands. The company aims to capture significant market share by balancing traditional internal combustion engine (ICE) offerings with new hybrid technology, catering to a broad spectrum of customer preferences.
According to Spencer Cho, Senior VP of Global Business Planning at Kia, the decision to integrate a hybrid system into the Seltos stems from a recognised slowdown in the transition to electric vehicles globally and a noticeable increase of the hybrid demand.
"The EV transition has had a little bit of a slowdown, so a lot of the ICE customers started thinking about these hybrid systems in transition to electric," Cho said at the launch of the new Seltos in Korea last week.
"We clearly see an increase in the demand for hybrid, and for this new generation [of Seltos], we clearly identified the necessity of hybrid systems, so we added them as additional increased opportunities to the overall volumes."
According to Cho, the new hybrid powertrain, featuring Kia's latest smart regenerative braking system, is designed to make hybrid technology accessible across nearly all global markets. While acknowledging that ICE models remain core due to affordability, Cho emphasised "We still believe the ICE and the hybrid combination might have much more opportunities to expand our market shares and also to meet the customer demand."
Alongside the new hybrid powertrain, Kia will continue to offer traditional internal combustion engine models globally, including the venerable 2.0-litre Atkinson Cycle petrol four-cylinder and Kia's familiar 1.6-litre turbo four-cylinder petrol, as well as a range of 1.5-litre petrol and diesel engines from the Indian and Chinese factories.
When developing the new Seltos, Cho said that Kia's primary focus was on customer needs and customer demand from previous generations, rather than direct benchmarking against specific competitors, noting that many Chinese brands in the compact SUV segment tend to concentrate on EVs or plug-in hybrids.
He said that Kia emphasises a balanced product portfolio, which includes competitive EV options like the EV3, alongside ICE and hybrid models, to offer choices that align with diverse market requirements.
"We are providing the choices to our customers with their ICEs, hybrid or EVs so we are fully prepared for the in any cases and in any market transitions," Cho said.
While Cho expects the ICE models to remain the core volume sellers, Kia has ambitious sales projections for the hybrid Seltos. In Korea and the U.S., Cho anticipates, "probably a minimum 30 or 40 percent of the volumes will be hybrid, and the US market probably, as you know, is a similar range".
Likewise Cho expects the percentage of hybrids to be "really high" in the European market, largely driven by stringent CO2 regulations. The overall SUV market continues to grow, with Cho predicting compact sedan customers switching to the small entry-level SUVs.
With SUVs now occupying more than 80 percent of the industry volumes in the U.S., Kia says the Seltos is positioned as an "appropriate choice" for these transitioning customers, while in Europe, it is expected to take significant market share, strategically positioned between the Stonic (two-wheel drive, no strong hybrid) and the Niro (hybrid only) in Kia's line up.
Locally, Kia New Zealand looks likely to go for a hybrid-only line up at launch, mirroring Toyota's local approach to small SUVs with its all-hybrid Corolla Cross range.
While the current Seltos range is all FWD in New Zealand, the Seltos is available in AWD form, while the new hybrid powertrain brings a new option to the table: e-AWD.
Kia's new e-AWD system in the Seltos features an additional electric motor on the rear axle, similar to the Corolla Cross E-Four AWD system that, unlike systems with mechanical connections, operates without a physical link between the front and rear axles.
While Kia NZ is yet to indicate whether or not the AWD hybrid is a starter for local sales, it does line up nicely with the most obvious competitor in the segment; that previously mentioned Corolla Cross.
Global production of the all-new Seltos began in December 2025 at Kia's India plant, followed soon after by production at facilities in Korea and China. Kia says the new Seltos will be available across Korea, North America, Europe, China and Asia Pacific throughout 2026, reaching up to 189 countries globally.
The hybrid variant is available in Korea from January 2026, followed by Europe, North America and other markets across the course of the year. Kia New Zealand anticipates it will land here sometime in the 4th quarter of this year.
