Exclusive: Kia set to move to all-hybrid range for non-EV models in Australia over next two years Exclusive: Kia set to move to all-hybrid range for non-EV models in Australia over next two years

Kia is decided to dump non-hybrid petrol and diesel engines in Australia as early as this yr because it confronts the realities of the federal govt’s Novel Car Emissions In model (NVES).

The dramatic switch to an all-hybrid Kia lineup — alongside a differ of EVs — starts with the 2nd-generation Seltos which would per chance originate later in 2026 with hybrid engines finest.

Once the Seltos goes all-hybrid, Kia Australia is predicted to embark on a immediate purge of pure petrol and diesel engine alternate choices because it seeks to steer decided of multi-million-greenback NVES fines.

Sorento and Carnival V6 already killed off, other non-hybrid engines will apply

Final month Kia killed off its most life like likely-CO2 engine: a 3.5-litre petrol V6 that used to be the most cost-efficient possibility for the Sorento huge SUV and Carnival folks-mover.

Next on the chopping block is the most affordable — nevertheless dirtiest — engine within the market for the Sportage midsize SUV. Merchants will be given a relentless need of hybrid or diesel.

NVES assigns credit score or penalties (fines) to automobile producers consistent with the moderate CO2 emissions of your entire vehicles provided every yr, with CO2 limits tightening from 2025 to 2029.

Stricter 2026 limits came into power on 1st January this yr and, with few exceptions, pure non-hybrid petrol and diesel vehicles and SUVs are now in breach of limits.

The lengthy-term answer is to sell more EVs, nevertheless for the following few years carmakers can end on the factual facet of NVES — avoiding grand fines — by promoting more hybrids, too.

Kia Australia to lean mighty into hybrids, following Toyota’s lead

That is Kia’s scheme: preserve rising EV sales while mashing the throttle on hybrids, consistent with chief govt officer Damien Meredith.

“We are going to strive to salvage as many hybrids into play earlier than the closing date, [before the point] once they’re of no advantage with regard to getting [NVES] credit score,” he said.

Product planning fashioned manager Roland Rivero confirmed the Seltos going all-hybrid is setting up the template transferring forward for Kia’s combustion automobile lineup.

“There will be other fat-model changes [to hybrid-only engines] to exhaust Seltos within the impending years,” said Rivero.

“Probabilities are you’ll per chance per chance must severely clutch into memoir [going all-hybrid]… It’s an NVES reality.”

Main driveaway pricing campaign to wait on investors into Kia hybrids

For 2026, NVES targets — which would per chance bend a chunk of searching on automobile weight — are factual 117g/km of CO2 for vehicles and SUVs, and 180g/km of CO2 for utes and a few heavy-duty 4WDs.

The V6 engine discontinued closing month used to be within the red, emitting 220g/km, nevertheless even the two.0-litre four-cylinder chanced on in most Sportage fashions produces 184g/km.

Meanwhile, the Sportage hybrid produces 40 percent less CO2 (110g/km), making it NVES compliant in 2026, and viable towards the 2027 limit of 92g/km.

The scenario for investors is that the Sportage hybrid is type of $6000 more costly than the non-hybrid petrol that is decided to be discontinued.

To bridge the hole, Kia is operating an aggressive driveaway mark campaign on the Sportage hybrid (from $44,490 driveaway) while asking 2.0-litre investors to pay fat freight (from $43,000 driveaway).

The Sportage hybrid saves an proprietor doing 15,000km per yr about $1000 annually in gas.

To bolster its NVES region, Kia is urging fleets and families alike into hybrid variations of its foremost trio of family vehicles. The Sportage, Sorento and Carnival extinguish up half of of Kia’s sales, that methodology they have a huge affect on overall emissions.

Internal sales figures from November 2025 to January 2026 uncover that Kia’s scheme is beginning to work.

Across the latest three months nearly half of of all Sportage sales had been hybrid, while hybrids made up 35 percent of Carnival MPV deliveries — nevertheless finest 21 percent for Sorento.

Diesel will live an possibility for the Sportage, Sorento and Carnival for the time being nevertheless in future, diesel Kia vehicles and SUVs will need gentle hybrid abilities to power CO2 down.

While pure diesels will even be more cost efficient than hybrids (notably on the twin carriageway), under NVES the staunch numbers that matter are CO2 emissions — and hybrids approach out on high.

K4 to salvage hybrid energy to handle Corolla, Tasman ute to be electrified

Kia is busily locking in hybrid energy for other fashions in its lineup with the K4 tiny automobile attach to plunge non-hybrid engines when it is facelifted, doubtless in 2027.

“Have to you are up towards a Corolla that is all-hybrid, it makes sense.

“Even if we can salvage 139g/km on the new [non-hybrid] powertrain, we can level-headed better that with a hybrid — at [a penalty of] $100 per gram [over the NVES limit], it adds up,” said Rivero.

Both the Seltos and K4 hybrid are anticipated to make exhaust of a variation of the Hyundai Kona’s 1.6-litre petrol-electrical unit. The Kona hybrid consumes 3.9L/100km while emitting 88g/km CO2 — and the aerodynamic K4 would per chance per chance end even better.

At the smaller end, Kia has already shifted the Stonic gentle SUV to a more frugal gentle-hybrid engine, and the Picanto hatch is doubtless to exhaust in a a similar direction almost right this moment.

More difficult to clear up would possibly be the Tasman ute, which emits around 200g/km (searching on clear grade) from its diesel engine.

Utes and 4WDs abilities relaxed NVES targets (180g/km in 2026, 150g/km in 2027) nevertheless the numbers tighten swiftly, making hybrids foremost even for gentle commercial vehicles.

Kia executives ascertain electrification is on the agenda for Tasman — nevertheless it completely is predicted to be a slower transition that would per chance per chance originate with a delicate-weight-hybrid diesel.

Unlike some competitors, Kia just is not as careworn by the final CO2 affect of the Tasman — each because it is never promoting in mountainous numbers, nevertheless additionally because it is promoting an in actuality in depth need of EVs (which emit a finest 0g/km for NVES functions).

Beyond 2027, Kia will must ratchet up EVs and shuffle-in hybrid sales

But while hybrids are viewed as a precious possibility within the immediate term, high Kia brass acknowledge that they are an intervening time step that end being precious remarkably swiftly.

This more or less in model, ‘Toyota-model’ hybrids Kia plans to push this yr have tiny friction for investors as they don’t can must be plugged in.

But their tiny batteries and negligible electrical-finest differ methodology the petrol part of the powertrain level-headed performs a substantial role and retains CO2 emissions broadly around the 200g/km stage.

“The [NVES advantage] for hybrids runs out in 2027 — there is in overall finest one possibility after that,” said chief govt Meredith.

That ‘one possibility’ methodology a shuffle — in other phrases, finest fat EVs and shuffle-in hybrids, which allow for in actuality in depth electrical-finest operating, are precious previous 2027.

A statutory review of NVES regulations is decided to occur later this yr. Kia just is not making a submission — Meredith says it is chuffed with the regime — nevertheless competitors, alongside side Toyota, are anticipated to behold more credit score for hybrids.

But when NVES limits and penalty rates live in their recent compose, the shift from pure ICE to hybrid would per chance per chance flip out to be the easy part.

With EVs making up factual 10 percent of Kia sales in Australia closing yr — itself a first payment end result towards the full market — the push into shuffle-in vehicles is in all chance the more complicated campaign.