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2027 Kia Seltos first drive gives you plenty of SUV for not much $
Kia has unveiled the second-generation Seltos, a small SUV that borrows styling cues from its larger Telluride sibling while starting at a modest $24,990 before delivery. The launch matters because it runs counter to an industry trend of automakers retreating to high-end, high-margin models, with Kia instead betting on affordability to compete, including against cheaper Chinese rivals. The new car is larger than its predecessor, which was originally developed with the Chinese market in mind, but remains a subcompact SUV, sitting a size class below vehicles like the Toyota RAV4 or Mazda CX-5.
At launch, buyers can choose between a 2.0-litre four-cylinder engine (147 hp, 132 lb-ft) offered with front- or all-wheel drive, or a more powerful 1.6-litre turbocharged four-cylinder (190 hp, 195 lb-ft) paired exclusively with all-wheel drive and the top SX X-Line trim, priced from $32,790. Fuel economy ranges from 30 mpg combined for the base front-wheel-drive model down to 26 mpg for the turbocharged version, while kerb weights span from roughly 3,109 lb to 3,715 lb depending on trim. A 1.6-litre hybrid variant is also planned but won't reach showrooms until the fourth quarter of this year, as it is still undergoing US EPA certification, meaning full details and a review will follow later.
In short
- Kia's new Seltos SUV starts at just $24,990
- Bigger than before, styled after the larger Telluride
- Petrol engines available now; hybrid version arrives late 2026
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Kia's strategy recognises persistent consumer demand for affordable, practical vehicles and the opportunity to build brand loyalty by offering genuine value. Volume sales in the mass market segment support sustainable business operations, whilst serving customers who might otherwise be priced out of new vehicle ownership. This approach also positions Kia defensively against Chinese competitors entering Western markets at competitive prices.
The case against
The automotive industry's shift towards premium, high-margin vehicles reflects sound economic logic. Small SUVs carry thin profit margins that struggle against competitors with structural cost advantages, particularly Chinese manufacturers. Sustainable business requires profits that fund innovation, quality, and dealer networks; pursuing volume in a margin-light segment may ultimately prove economically unsustainable and distract from more profitable endeavours.
Explained simply
The Kia Seltos is an affordable small SUV made by South Korean manufacturer Kia. Vehicles in this class are smaller and cheaper than mid-sized competitors such as the Toyota RAV4 and Mazda CX-5.
Most car manufacturers have been moving away from affordable models in recent years, instead focusing on higher-priced vehicles with bigger profit margins. Kia's decision to continue offering an inexpensive Seltos therefore stands out, particularly because the company is competing against cheap Chinese car makers rather than focusing solely on premium rivals.
The Seltos was originally created for the Chinese market, but Kia now positions it for global appeal, including in the competitive United States. This reflects Kia's broader strategy of serving buyers across different price points and market segments.
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