Pre-Contract New Record Kia Sorento, Can It Overcome the 'Tax Benefit Exclusion' Crisis and Keep Running?

Unable to Receive Tax Benefits Due to Fuel Efficiency Below 0.5 km/l
Hybrid Model Prices Expected to Increase by Over 2 Million Won

Kia Motors 4th Generation Sorento (Photo by Kia Motors)

[Asia Economy Reporter Kim Ji-hee] The new Kia Sorento, which was gaining momentum with nearly 20,000 pre-orders on the first day, has encountered an unexpected obstacle. The hybrid model failed to meet the government's energy consumption efficiency standards, resulting in the loss of eco-friendly vehicle tax benefits. Kia has temporarily suspended pre-orders for the hybrid model and is preparing separate compensation plans for customers who have already placed orders.

Kia suspended pre-orders for the new Sorento hybrid model starting at 4 p.m. on the 21st. This was due to the model not meeting the government's energy consumption efficiency standards, excluding it from eco-friendly vehicle tax benefits. To qualify for tax benefits, fuel efficiency must exceed 15.8 km/ℓ, but the Sorento hybrid achieves only 15.3 km/ℓ. Consequently, the initially announced price range (35.2 million to 41 million KRW) is inevitably subject to change. The tax benefits, which include individual consumption tax, education tax, and value-added tax, amount to approximately 1.43 million KRW. Additionally, at the time of registration, acquisition tax of up to 900,000 KRW must be paid, potentially increasing the total price by about 2.33 million KRW.

A Kia representative stated, "We plan to prepare separate compensation plans for customers who pre-ordered the hybrid model and will contact them individually. Pre-orders for the diesel model will continue, and the resumption date for hybrid model orders will be announced later."

The new Sorento, fully redesigned (full change) for the first time in six years since the third generation launched in 2014, is one of Kia's most anticipated models this year. Ahead of its official launch next month, the pre-orders that began on the 21st saw 18,800 units ordered in just one day, signaling a strong market response. This is the highest number of first-day pre-orders ever for Hyundai and Kia combined and surpassed the record of 17,294 units set by Hyundai's 'The New Grandeur' released in November last year within just three months, making it highly significant.

However, concerns have arisen that the sudden suspension of pre-orders could hamper progress before it even begins. The hybrid model, in particular, had drawn attention as the first domestically produced mid-size hybrid sport utility vehicle (SUV). Kia appears to be moving quickly to devise countermeasures to maintain the initial momentum of success.

Kia Motors 4th Generation Sorento Interior (Photo by Kia Motors)

The new Sorento is designed with the goal of a 'Borderless Gesture,' an attempt to break away from the conventional SUV design norms. The exterior concept is 'Refined Intensity,' maintaining the traditional ruggedness while adding innovation through refined lines and surfaces.

Based on a new platform, the vehicle also enhances space utilization. Kia explains that it secures a spacious interior that is competitive not only among mid-size SUVs but also compared to large SUVs. Compared to the previous model, the overall length has increased by 10 mm, and the wheelbase has been extended by 35 mm to 2,815 mm.