Kia's first fully electric model in Australia has reached the end of its production cycle.

The Niro EV, which introduced the brand to the electric vehicle (EV) market, has been officially discontinued less than four years after its local debut. This decision reflects Kia's shift towards offering different EV models in Australia, such as the recently introduced Kia EV3.

The Niro was launched in Australia in 2021, several years after its first-generation model debuted internationally in 2016. Despite receiving an update in 2022, the Niro did not establish a strong position in the market.

The Niro Hybrid accounted for 45% of the model's total sales in 2023, indicating that Australian consumers continued to prefer petrol-electric options. Meanwhile, the Niro EV faced competition from larger and lower-priced alternatives, including Tesla models and various Chinese EVs.

One factor in the Niro EV's discontinuation is Kia's changing model range. The introduction of the larger EV5 SUV in 2024, which offered more interior space at a lower price than the Niro EV, reduced demand for the latter.

This was followed by the launch of the EV3 in March, which entered the market at a price nearly AUD 20,000 (US$ 12,500) lower than the Niro EV.

"We've stopped Niro EV production-wise," stated Kia Australia's Head of Product, Roland Rivero. "There is still a limited supply available at dealerships, but that will be the last of it."

The Niro Hybrid remains in production; however, its long-term future is uncertain, particularly with the next-generation Seltos SUV expected to include hybrid technology. If this occurs, the hybrid Niro may also be phased out within the next 18 months.

Kia has expanded its hybrid technology across several models, including:

- Sportage Hybrid
- Sorento Hybrid
- Carnival Hybrid
- Upcoming Seltos Hybrid

With hybrid technology becoming standard in Kia's mainstream model range, the need for a standalone hybrid model such as the Niro has diminished.

In the EV segment, the Niro EV competed with newer models that included more recent technology at lower prices. In the hybrid category, the Niro Hybrid S (AUD 45,000) was priced slightly lower than the larger Sportage SX Hybrid (AUD 45,950), providing an alternative for buyers.

Internationally, the Niro will continue to be available in markets such as the United Kingdom and the United States, where the EV3 has not yet been introduced. In Australia, Kia is focusing on different EVs and hybrids while discontinuing models with lower sales performance.

The discontinuation of the Niro EV reflects a shift in Kia's approach to the Australian market, with the company adjusting its offerings in response to changing demand.