Kia K4 hatch in holding pattern

AUSTRALIAN Kia buyers are in a holding pattern until late this year awaiting the hatchback version of Kia’s just-launched K4 sedan, replacement to the 21-year-old Cerato nameplate.

Kia Australia is itching to get the hatch because the five-door styling has – in comparison to the sedan – taken the bulk of sales under the Cerato name since 2004.

The holdup in the release of the K4 hatch is attributed to demand on the new small-car model from major markets the US and Europe, aggravated by the reorganisation of Kia production facilities making its Mexican factory now the sole source of the K4.

Kia previously sourced the Cerato for Australia from Korea, while other markets also used plants for domestic sales in Slovakia, the US, India and China.

Slovakia manufactures the cee’d and pro_cee’d based on the Cerato/Hyundai i30, but mainly for the European market. Australia sold the pro_cee’d GT from 2014 to 2016, pulling the model after sales of only about 750 units.

Kia said the hatch was an important piece of the jigsaw, accounting for 60 per cent of model sales of the Cerato and which it said was expected to be the same for the K4.

Kia Australia CEO Damien Meredith said K4 sales in 2025, including the hatch that enters in the last quarter, to be 8000 to 9000 units.

Much of this is driven, he said, not only by growth in Kia but a strengthening sedan market.

He said the small-car category is up 10 per cent year-on-year despite the ongoing interest and expanding portfolio of rivals, predominantly small SUVs.

The sedan and hatch will appeal mainly to the private buyer – Kia estimates 60 per cent will be private – with fleets taking the remainder. Initially, the flagship GT-Line variant will grab up to 40 per cent of sales, with the next best-sellers being the Sport and then S.

More exposure to the market is expected to see fleet sales increase to about 50 per cent, at the expense of the private sector, while more sales are also forecast for the mid-range Sport and Sport+, and the base S with the optional Safety Pack.

The sedan aims at a different market segment than the hatch, with major differences being the length (the hatch is slightly shorter) and cargo space (the hatch has about 530 litres; the sedan 508 litres).

Kia could also hone the hatch to the sporty buyer but has, at least for the moment, not decided on a GT version, similar to the pro_cee’d GT of 2016.

The problem is the logistics and ultimate sales potential of sourcing and engineering a more potent engine for the K4 hatch and then introducing it on the Mexican production line.

Kia also gave no indication of the price of the hatchback version, but it is expected to follow the Cerato with identical prices and a similar model grade offering.