Kia pitches Picanto at $14,990 drive-away

A unique sales strategy targeting university students and their parents is expected to be a cornerstone of Kia's plan to launch the Picanto micro-car in Australia.

Kia Australia CEO SH Cho is in Korea now presenting the business case for the long awaited Picanto, which should arrive in Australia as soon as the end of the year in a single specification five-door model priced at $14,990 drive-away with a 1.2-litre four-cylinder engine and four-speed automatic.

This car would be the update of the current TA Picanto first shown at the Geneva motor show earlier this year.

The only potential delay is if Kia Australia decides to wait for a rumoured six-speed automatic, which could appear as part of a new generation Picanto range as soon as mid-2016.

 "We have a 99 per cent expectation that the car will arrive," confirmed Kia Australia media and corporate communications manager Kevin Hepworth.

"There was a suggestion out of Geneva this year that the next generation vehicle would get a six-speed automatic, so you either wait for that or launch the car as it is now, which is our preference."

Kia Australia has been paving the way for Picanto by moving its current entry-level Rio mini-car up-market, pricing the five-door automatic S at $16,990.

"That has opened up a home in the garage – if you like – for Picanto," said Hepworth. "That was a part of the marketing planning, to move that car up so the Picanto could come in unchallenged by anything else we have in our marketplace."

As previously reported by motoring.com.au, Kia Australia's marketing plan for the Picanto is based on the way the Soul model is pitched in the USA as a safe choice for parents to buy for their university students.

The plan would include some form of financial discount for uni students if they buy a Picanto. Hepworth described it as something like HECS, a reference to the Australian government's Higher Education Contribution Scheme, in which students repay education loans once in the work force.

Kia will also promote the Picanto's low running costs and capped-price servicing plan, as well as the Korean brand's industry-leading seven-year/150,000km warranty.

"The financing idea hasn't been fully nutted out yet," admitted Hepworth. "It is similar to HECS but wouldn't be a freeby fully up-front. There would be a finance advantage at entry for university students."

The Picanto measures up at 3595mm long, 1595mm wide and 1490mm high, and has a luggage capacity of 200 litres, growing to 870 litres with the rear seat folded. Its 1248cc engine produces 62kW at 6000rpm and 120Nm at 4000rpm. The claimed European combined fuel consumption figure is 5.6L/100km combined with CO2 emissions of 130g/km.

The current Picanto achieved a four star Euro NCAP crash test rating when it was launched in 2011.

Hepworth confirmed Picanto would undergo local ANCAP crash testing and said safety would be part of the car's pitch.

"If you [a parent] are going to buy a used car that is rear-wheel drive, average suspension and powerful; why would you? Why don't you put your kids in a car that they can drive reliably and safety with a seven-year warranty?"

Obvious and cheaper rivals for the Picanto will include the Holden Barina Spark ($12,890), Nissan Micra ($13,490), Mitsubishi Mirage ($11,990) and Suzuki Celerio ($12,990 drive-away).

"The Picanto is not and never will be a $12,990 car, it's not a cheap car, it's not a giveaway car," said Hepworth.

The confirmation of Picanto comes as Kia strives to grow its sales to 50,000 by 2019. It forecasts a brand sales record in Australia over 30,000 in 2015.

It predicts the Picanto could be worth as many as 3000 units per year towards that total. However, the segment it enters has crashed more than 30 per cent in 2015 and has generated only 5846 sales in total in the first six months of the year, according to VFACTS.