Hyundai Motor (005380.KS) and Kia (000270.KS) are withdrawing from the diesel passenger car market, halting production of the Sorento diesel, the last remaining diesel model in their lineups. The automakers plan to concentrate on hybrids and electric vehicles.
Kia ended production of the Sorento diesel in the middle of this month, according to industry sources on the 28th. Starting with the 2027 model-year update, the Sorento will be built only with gasoline and hybrid powertrains. Sales of the diesel version will stop once remaining inventory is cleared.
The two companies have steadily cut diesel models across sedans and recreational vehicles. Diesel offerings fell to 11 in 2023 from 15 in 2022, then to nine in 2024 and five last year. This year, after inventories of the Carnival and Staria diesels ran out, the Sorento was the only diesel model still in production and on sale — and it is now being discontinued as well.
Hyundai and Kia will now produce diesel models in Korea only for commercial vehicles, including medium- and heavy-duty trucks and buses. Diesel versions of their one-ton light trucks, the Hyundai Porter and Kia Bongo, were dropped back in 2023. The companies also plan to consolidate diesel engine production facilities, leaving only the Jeonju plant.
Hyundai and Kia are focusing on developing next-generation hybrid and electric vehicle platforms. Hyundai aims to raise eco-friendly vehicles to 60% of its targeted 5.55 million global sales in 2030. Kia is targeting 52% of its 4.13 million units. The automakers will also reduce volumes of the few remaining diesel models among localized vehicles built overseas, including in India, in line with falling demand.
With Hyundai and Kia stepping back, only two domestically built diesel models remain: KG Mobility's Musso and Rexton. Korea's GM and Renault Korea phased out their diesel models in 2020.
