Episode Details

Kia’s record month was not thanks to EVs

Kia sold 75,857 vehicles in July, its best July ever. You might assume the record was driven by the Telluride, the EV9, or another high-profile model. But two less celebrated SUVs accounted for much of the brand’s growth, and they point to two very different things American buyers want right now. The Seltos rose 61 percent year over year, while Sportage Hybrid sales jumped 76 percent. At the same time, Kia’s EV sales declined, even as total hybrid sales more than doubled.

The Bestseller Is Still Finding New Buyers

The Sportage is already one of Kia’s best-selling vehicles, which makes a 76 percent jump in hybrid sales even more significant. Fast growth is easy when a model is small, new, or both. It is much harder when the model is already moving large numbers. The Sportage Hybrid is not asking buyers to learn a new way to own a car. It is offering them lower fuel consumption in a model they already know and love. Kia’s 108 percent jump in hybrid sales suggests that buyers are increasingly treating hybrid power as the low-risk middle ground between gasoline and electric vehicles.

Kia’s Budget SUV May Be Benefiting From Expensive Cars

The Seltos is not a hybrid and does not have the Sportage’s scale. Its appeal may be simpler: It gives buyers an SUV without forcing them into the price of a larger one. The Seltos starts below the Sportage and far below Kia’s larger three-row SUVs, giving buyers a way to retain the high seating position and cargo flexibility of an SUV without the cost of a bigger vehicle. Simply put, the Seltos is not necessarily winning because small SUVs are suddenly desirable. It’s winning because affordability is king, now more than ever.

Two SUVs, One Practical Message

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The Sportage Hybrid and Seltos appear to serve opposite ends of Kia’s lineup. One adds electrification to an established bestseller. The other keeps the price of SUV ownership within reach. But both solve the same problem: Buyers want

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