Why Kia’s first pickup isn't debuting in US

Kia’s first-ever pickup, the Tasman, is unlikely to debut in the US, the world’s largest pickup truck market, largely due to lower profitability amid protectionist policies there.

“We do not have plans to sell the Tasman pickups in the US because of the hefty tariffs imposed on Korea-made pickups under the free trade agreement between the two nations,” a Kia official told The Korea Herald at the Tasman’s media unveiling event in Seoul on Monday.

The official also downplayed the possibility of producing the car at the carmaker’s Georgia plant which has been operational since 2010.

Currently, the US imposes 25 percent tariffs on Korea-made pickups, whereas tariffs on passenger cars from Korea have been gradually abolished since 2012. Previously, the US had agreed to phase out the tariff on pickups by 2021. But the Donald Trump administration renegotiated and extended it until 2041.

Former President Trump has praised the tariff extension as a major accomplishment during his presidency. “If I didn’t get that tax, South Korea and China would be destroying us,” Trump said during a campaign rally in York, Pennsylvania on Aug. 19.

In the US, gigantic pickups catering to personal and commercial needs are popular. Car models, including Ford’s F-Series, General Motors’ Chevrolet Silverado and GMC Sierra, and Stellantis North America’s Ram trucks, dominate the market. In 2022, pickup trucks accounted for 20.5 percent of new car purchases in the US, according to data from Good Car Bad Car.

Experts say Kia is likely to have opted out of the US market for the brand-new Tasman due to the nation’s protectionist trade policies and the historical loyalty of American consumers to domestic car brands.

“Hyundai Motor’s Santa Cruz pickup truck, which made its ambitious US debut in 2021, has struggled with sales – all the more reason for Kia to avoid penetrating the truck market,” said Kim Pil-su, a car engineering professor at Daelim University.

Slated for launch next year, the Tasman will primarily target markets in Korea and Australia, according to the Kia official. The domestic market share for pickups is relatively weak – about 30,000 to 40,000 unit sales annually – as large SUVs gain popularity. With the new car launch, Kia aims to attract potential customers and diversify its vehicle lineup.

Kia is also expecting strong demand in Australia, where pickup sales are growing. In reflection of the strategic focus, the name Tasman pays homage to Tasmania, an island state of Australia known as the “Island of Inspiration,” and the Tasman Sea, which separates Australia and New Zealand.

In addition to Korea and Australia, Kia plans to focus on regions such as Asia, the Middle East and Africa.

The carmaker said Tasman boasts more high-tech features including Advanced Driver Assistance Systems to prevent forward collisions and assist with long-distance highway driving compared to rival car models. The in-car panoramic wide display offers a 12.3-inch infotainment system with a 12.3-inch cluster and a 5-inch air conditioner display. It also adopted a tilt-and-slide second-row seat, a first for mid-sized pickups.