Australia’s lagging EV interest leading to supply delays according to Kia

Kia Australia has revealed that rising demand in other global markets has led to a delay in the company getting their hands on electric vehicles (EVs) down under.

Not the first manufacturer to delay the arrival of EVs in Australia, Kia Australia were planning to use their sponsorship of the Australian Open Tennis tournament as a platform to launch their push into the electric technology.

However, Kia was unable to supply the vehicles required, with Kia Australia Chief Operating Officer, Damien Meredith saying demand for the vehicles in global markets with legislation regarding emissions took priority over Australia’s supply.

“We did want an (electric car) rollout to coincide with the Australian open,” said Meredith.

“(Electric Vehicles) for Western Europe and North America take so much supply that we weren’t able to get enough for Australia. We still think it would be a great story to run a complete program for the Australian Open, but it would be fair to say that supply goes to the markets that have legislation in place to ensure there is a lower CO2 output than Australia.”

Kia have committed to producing 11 EV models by 2026 as expected demand for EVs continues to grow. However, Meredith questioned whether Australia would ever see increased demand for the product.

“I think the thought that we might drive from Sydney to Melbourne or Sydney to the Gold Coast, even if that is only once a year, plays a big part in the mentality of the electric vehicle buyer. What has to drive sales is infrastructure and legislation. There’s no doubt that every manufacturer has invested heavily in electric vehicles, and legislation needs to catch up.”

Kia aims to achieve the goal of having 25 percent of its sales come from electric or hybrid powered vehicles within five years. For Australia to reach this target, Meredith says, requires change.

“Lower pricing will help increase sales, but infrastructure and legislation are key as well.”

Many other manufacturers are delaying the arrival of EVs in Australia or flat out refusing to enter the market.

Volkswagen have pushed back the date they will bring EVs to Australia to 2022, while Toyota Australia will not bring EVs into the country, preferring to focus on their successful hybrid market.

While EV supply will remain low for Kia Australia in 2020, the brand has set its sights on backing up a record breaking 2019 sales wise.

Kia was the only brand inside the top 10 car sellers of 2019 to increase sales numbers, but believe they have the product to continue this trend as others continue to fall.

“We think we can probably grow between four and five percent this year,” said Meredith. “Thanks to a full year of Seltos, that product is going to help us there.”

The Seltos, Kia’s latest city-SUV model, was released in Australia late last year, with Kia expecting to sell approximately 650 units per month.

Original source: Caradvice | Kia says demand for its electric cars overseas could delay their arrival in Australia

28 Jan 2020

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