Kia says electric EV5 will ‘enable us to continue to sell Tasmans’ under incoming emissions rules

Kia Australia executives have identified the 2024 Kia EV5 mid-size electric SUV as a "key product" that will ensure it can launch the Tasman – its first diesel ute – without paying fines under the Federal Government's upcoming emissions standards for new vehicles.

In force from next year, the New Vehicle Efficiency Standard (NVES) will place CO2 emissions targets on all new vehicles sold by a car maker in Australia.

Car companies like Kia will be able to balance emissions compliance across their model ranges, so they can continue selling high-emitting cars – as long as they sell enough low-emitting cars to offset them, or else buy credits from other brands which have met their own targets.

"[The Kia EV5] is very important for NVES, it’s one of the key products to enable us to continue to sell Tasmans and [Cerato-replacing] K4 internal combustion [cars], so we really have to do it right from the get-go," Roland Rivero, Kia Australia's General Manager of Product and Training, told Drive.

RELATED: How Australian new-vehicle emissions rules have been relaxed to help utes, 4WDs

The Tasman is due mid-next year as Kia's first dual-cab ute – expected with a 2.2-litre turbo-diesel engine – while the K4 is the replacement for the Cerato sedan and hatch, with petrol power.

Each year the CO2 targets will be reduced to become stricter over time – and car makers which do not meet the targets will face hefty fines.

Kia Australia CEO Damien Meredith said the South Korean car maker intends to "break-even" with its product line-up under the NVES.

"Our aim is to have a break-even situation. We won’t be buying credits and we won’t be selling credits," Mr Meredith told Drive.

There has been speculation the EV5 will have a drive-away price under $65,000 or $70,000 in order to undercut the Tesla Model Y, but recent Tesla price reductions of up to $4500 for the cheapest model – or $8500 for more expensive variants – have cast doubt over whether this will be possible.

Asked whether Kia was still targeting a starting price below that of the Model Y, Mr Rivero would only say the plan was still to make the EV5 "a great value proposition".

"We're aiming for a great value proposition from launch is as much as I will say. We want to make sure EV5 does what it needs to for the brand," Mr Rivero told Drive.

Mr Rivero added the EV5 – due in local showrooms in June 2024 – had "the ability to convert early adopters and mainstream internal combustion engine (ICE) or hybrid buyers".

As for Kia Australia's stance on the revised NVES – which was recently eased to give car makers more time to manage sales of heavy-duty 4WDs and utes – Mr Meredith said the brand was "very confident" in its line-up.

"We want to wait until the final legislation goes through both houses so that we can plan what we need to do, we’re very confident with our product line-up," Mr Meredith said.

Mr Rivero added Kia's success in overseas markets with tighter emissions regulations had proven the brand was ready for the new rules.

"We’ve been on a journey as a brand globally [towards EVs] and have been investing in that journey well before NVES was announced," Mr Rivero said.

"Kia has done well in mature markets that have already got CO2 regulations like Western Europe and North America and that global strategy is definitely in our favour in Australia. We will utilise the products and powertrains so we can address NVES accordingly."

Similarly-sized to Kia's Sportage mid-size SUV, the Kia EV5 will be offered in Australia with a choice of a 64kWh standard-range or 88kWh long-range battery, as well as front- or all-wheel drive.

Executives for the South Korean car giant have previously told Drive the company is aiming to sell 10,000 EV5s a year – placing it among Australia's top five selling electric vehicles and making it one of Kia Australia's most popular models.