Kia has confirmed that it will introduce a hybrid powertrain for the Seltos. The subcompact SUV, which comes only with gasoline engines in the United States, is outselling the Niro and Soul, averaging around 60,000 units a year. A hybrid variant would help expand its appeal.
Expansion of HEV variants at both ends
During his presentation at the 2025 Kia CEO Investor Day held in Seoul, South Korea, President and CEO Ho Sung Song confirmed that Kia will take hybrid technology into the subcompact and large SUV segments in the next step of the company’s electrification plan.
We will continue offering ICE models in the short to mid-term to meet residual demand in emerging markets, while expanding and diversifying our HEV lineup from Seltos to Telluride.
Ho Sung Song, Kia’s President & CEO, at the 2025 Kia CEO Investor Day on April 9, 2025
4% higher mpg
The company didn’t spell out the engine displacement or number of cylinders, but confirmed that the next-gen HEV system that it was developing will feature a coaxial serial connection between motor and engine. The CEO also confirmed that the fuel efficiency of the next-gen system would be improved by approximately 4%, while offering enhanced acceleration.
Lastly, Kia will also address one key piece of feedback from customers (and us) on some of the existing hybrid models: Smooth motor-to-engine transition for better driving experience.
During the 2024 CEO Investor Day, Song confirmed that the company was developing a hybrid system for its subcompact & midsize HEVs. He promised “significant improvements in power, torque, and fuel economy” from the new system.
e-AWD
While the large-sized HEV is adopting a turbocharged 2.5-liter engine, Kia could employ a low-cost 1.5-liter engine in the Seltos Hybrid. According to an ETNews report dated July 2, 2024, the first-ever Kia Seltos Hybrid will feature an electric all-wheel drive (e-AWD) system.
This setup is expected to use a dedicated rear electric motor to power the rear axle. The e-AWD system should improve responsiveness, control, and support all-weather driving, particularly useful in northern and western states, which receive abundant snowfall.
Future of the Seltos in the U.S.
The Donald Trump administration has enforced a 25% tariff on all vehicles coming into the U.S. The U.S.-spec Seltos is shipped from Kia’s Autoland Gwangju plant in South Korea, which is expected to continue production for the second generation. To reduce the burden of tariffs, at the very least, Kia would need to assemble the Seltos locally. That’s a challenge, as the company is likely to prioritize U.S. production of higher-volume midsize models. It remains to be seen how Kia will evolve Seltos sales this year.
An automobile engineer by training, I’ve analyzed the global car market since 2005, with a keen focus on EVs since 2008. My journey in online automotive publishing spans 17 years, during which I have reviewed cutting-edge automotive technologies and interviewed leading global CEOs and vehicle developers.
