Kia is set to expand production of its popular small sports utility vehicle (SUV), the Seltos (3rd Generation), at both its Gwangju and Hwaseong plants. Previously manufactured exclusively at the Gwangju Plant, this marks a strategic move aimed at boosting production capacity and meeting increasing global demand, particularly with the introduction of the Seltos Hybrid model.
Production Expansion to Hwaseong Plant
According to industry sources, Kia’s labor and management recently reached an agreement to start producing the third-generation Seltos at the Hwaseong 2 Plant, in addition to the existing Gwangju 1 Plant. The production process will commence at Gwangju 1 Plant, while additional units will be manufactured at Hwaseong 2 Plant to meet expected higher demand.
The decision is particularly noteworthy as Kia produced 159,965 units of Seltos in 2023 at the Gwangju facility. With this expansion, the company aims to increase production efficiency and fulfill rising orders, especially for the hybrid variant.
Seltos Hybrid to Drive Sales Growth
One of the key factors behind Kia’s production strategy is the anticipated sales surge of the first-ever Seltos Hybrid. This marks the first time a hybrid powertrain has been introduced to the Seltos lineup, a move expected to attract environmentally conscious consumers and boost Kia’s competitive edge in the SUV market.
Additionally, the complete redesign after seven years—since its first release in 2019—adds to its appeal, making it a strong contender in the global compact SUV segment. Industry analysts project that the hybrid version will significantly contribute to sales growth.
Seltos: A Global Best-Seller
The Seltos has been a consistent top performer in Kia’s global lineup, ranking as the company’s second-best-selling SUV in 2023, just behind the Sportage (580,000 units sold worldwide). It recorded 250,000 unit sales in emerging markets and Europe, further solidifying its position as a global favorite.
Kia’s success in the compact SUV category is further highlighted by Hyundai Motor Group’s achievement of surpassing 1 million cumulative sales of the Seltos, making it the second model to achieve this milestone after the Hyundai Kona.
Conclusion
Kia’s strategic expansion of Seltos production to the Hwaseong 2 Plant is a calculated move to accommodate growing demand, particularly for the new hybrid model. With its global popularity, redesigned features, and eco-friendly hybrid variant, the new generation SUV is poised to continue its success and strengthen Kia’s position in the compact SUV market.
Pictures by SH Proshots
