Insight: Kia’s ‘multi-energy’ approach for the UK market

In 2019, the Niro sold just over 9000 units, and when Covid hit, sales actually then doubled, increasing incrementally ever since. In 2022, Niro sales will likely top 24,000, and it may well take a place in the top 10 best-selling cars of 2022. As of the end of November, 23,280 Niro had been sold, 14,695 of them Mk1 cars. Order a Niro now and you will wait up to six months for it, no matter the powertrain. “And people are prepared to wait,” said Philpott. 

There has been a notable shift more towards EV in demand for what Niro buyers go for between generations. In the Mk1, it was 56% hybrid, 34% EV and 10% PHEV. In the Mk2, demand for the hybrid has stayed consistent at 55%, but EV share has increased to 40% and PHEV has dropped to 5%. These numbers are reflected in the future order bank, too, where of the 20,056 Niro orders Kia had of last week, 9325 were for the hybrid, 8940 the EV and 1791 the PHEV.

Philpott said that the full spectrum of powertrain options broadens the appeal of Niro and allows buyers to more carefully consider whether or not they’re ready to make the switch to a full EV, as well as perhaps progress through the different powertrain options. 

“Clearly there are many people now just saying ‘I’m gonna make the jump to EV’,” he said, and they choose the full Niro EV. But the Niro is then still able to secure buyers who might intend to buy an EV, yet when push comes to shove they decide otherwise and end up with one of the other powertrain options, “particularly those with without off-street parking, for whom home charging is more challenging, perhaps their driving needs are such that they need some greater flexibility or they don’t yet have the confidence of charging infrastructure”.

Philpott continued: “The options of HEV and PHEV are there. I think people are comparing them, and by giving people the choice, it forces them to ask themselves questions: what do I want for the next three years of car ownership? Am I ready to go fully EV? Perhaps [I will instead go] PHEV, [because] it gives me an option.

“And now that there are no [UK government] Plug-in Car Grants for EVs, we’re seeing PHEV retail demand increase as well, where really up until about six months ago, PHEV was fleet usage because of the BIK [tax] benefits. Now we’re seeing retail demand for PHEVs increase. It’s obviously still very strong for EVs, but it’s growing for PHEVs.”

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