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Kia scraps the low-cost Rio, paving the way for two new electric vehicles

The low-cost Rio compact car will not be making a return in the US for a 2024 model year. Instead, Kia is expected to transition its production facility in Mexico, where the Rio is built, to produce two new EVs in Mexico.

Kia retires the Rio in favor of new EVs

According to a new report from Automotive News, the Kia Rio will follow in the footsteps of its small Hyundai counterpart, the Accent, which was retired after the 2022 model year.

The trend comes as US buyers gravitate toward larger vehicles. For example, minivans, crossovers, SUVs, and pickups represented nearly 80% of all new vehicle sales in the US this year through June.

Kia remains committed to sedans despite Rio sales falling 14% to 26,996 last year and another 2% through July.

The automaker is reportedly upgrading its manufacturing plant in Mexico, where the Rio is currently built. The governor of New Nuevo Leon, Mexico, Samuel Garcia, revealed Kia’s plans on Twitter (now X) in May.

Garcia initially announced a “billion-dollar investment to expand its plant and produce two Kia car models,” later removing the “billion-dollar.”

Kia-Rio-EVs
(Source: Samuel Garcia)

Another post reads, “Kia announces billion dollar investment to install another plant in Nuevo Leon where it will produce two new electric models in conjunction with Hyundai.” However, Kia has yet to confirm this.

Kia plans to roll out 14 EVs globally by 2027, including the flagship EV9, its first three-row electric SUV, which debuted in March.

Meanwhile, Kia intends to go beyond SUVs. The marketing director for Kia Europe told Autocar recently that the company would “have coverage in all major segments,” suggesting models from an EV1 up to the EV9.

Kia-EV5-leaked-images
Kia EV5 (Source: (Source: AutoHome)

Top comment by Roger Kinney

Liked by 15 people

“minivans, crossovers, SUVs, and pickups represented nearly 80% of all new vehicle sales in the US this year through June.”

Blame the US govt…. Cafe standards killed cars because vehicle manufacturers pivoted to producing “light trucks” which have less stringent MPG standards! Most consumers don’t even know about it. Crazy stuff!

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Earlier this year, Kia revealed the EV5 crossover, which will sit between the Niro EV and EV6. Ahead of its debut at the Chengdu Motor Show in China, leaked images show the EV5 in full production form. (You can see all of them here.)

The EV5 will be produced in China and exported to international markets. (No word on if it’s coming to the US.) The electric crossover is expected to start around $40,000 (50 million won). Kia has also confirmed it will roll out an all-electric pickup.

Kia-Rio-EVs
Kia limited edition Forest Green EV6 next the the EV9 (Source: Kia)

According to Automotive News, the two EVs Garcia mentioned could reference the planned EV3 and EV4, two smaller crossover sedans set to ride on Hyundai’s new Integrated Modular Architecture (IMA).

The IMA will replace the current E-GMP (used for the present Kia and Hyundai EVs) to support 13 new dedicated electric models for Hyundai, Kia, and Genesis through 2030.

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising

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