Kia’s first-ever pickup, the Tasman, is unlikely to debut within the US, the world’s largest pickup truck market, largely as a result of decrease profitability amid protectionist insurance policies there.
“We should not have plans to promote the Tasman pickups within the US due to the hefty tariffs imposed on Korea-made pickups beneath the free commerce settlement between the 2 nations,” a Kia official informed The Korea Herald on the Tasman’s media unveiling occasion in Seoul on Monday.
The official additionally downplayed the opportunity of producing the automotive on the carmaker’s Georgia plant which has been operational since 2010.
At the moment, the US imposes 25 p.c tariffs on Korea-made pickups, whereas tariffs on passenger automobiles from Korea have been steadily abolished since 2012. Beforehand, the US had agreed to part out the tariff on pickups by 2021. However the Donald Trump administration renegotiated and prolonged it till 2041.
Former President Trump has praised the tariff extension as a serious accomplishment throughout his presidency. “If I didn’t get that tax, South Korea and China could be destroying us,” Trump mentioned throughout a marketing campaign rally in York, Pennsylvania on Aug. 19.
Within the US, gigantic pickups catering to non-public and business wants are well-liked. Automotive fashions, together with Ford’s F-Collection, Basic Motors’ Chevrolet Silverado and GMC Sierra, and Stellantis North America’s Ram vans, dominate the market. In 2022, pickup vans accounted for 20.5 p.c of latest automotive purchases within the US, based on information from Good Automotive Unhealthy Automotive.
Specialists say Kia is more likely to have opted out of the US marketplace for the brand-new Tasman as a result of nation’s protectionist commerce insurance policies and the historic loyalty of American customers to home automotive manufacturers.
“Hyundai Motor’s Santa Cruz pickup truck, which made its formidable US debut in 2021, has struggled with gross sales – all of the extra motive for Kia to keep away from penetrating the truck market,” mentioned Kim Pil-su, a automotive engineering professor at Daelim College.
Slated for launch subsequent 12 months, the Tasman will primarily goal markets in Korea and Australia, based on the Kia official. The home market share for pickups is comparatively weak – about 30,000 to 40,000 unit gross sales yearly – as massive SUVs acquire reputation. With the brand new automotive launch, Kia goals to draw potential clients and diversify its car lineup.
Kia can be anticipating robust demand in Australia, the place pickup gross sales are rising. In reflection of the strategic focus, the identify Tasman pays homage to Tasmania, an island state of Australia generally known as the “Island of Inspiration,” and the Tasman Sea, which separates Australia and New Zealand.
Along with Korea and Australia, Kia plans to deal with areas corresponding to Asia, the Center East and Africa.
The carmaker mentioned Tasman boasts extra high-tech options together with Superior Driver Help Techniques to stop ahead collisions and help with long-distance freeway driving in comparison with rival automotive fashions. The in-car panoramic vast show gives a 12.3-inch infotainment system with a 12.3-inch cluster and a 5-inch air conditioner show. It additionally adopted a tilt-and-slide second-row seat, a primary for mid-sized pickups.
