Why is the Kia Seltos Cheaper in China than in the US and Vietnam?

Kia Seltos is a prime example of this, with its B-segment SUV offering in China priced so competitively that it surprised many, despite having a similar exterior and features to those offered in other markets.

The Kia Seltos was first introduced in China in late 2019 under the name KX3. It wasn’t until 2023 that the name Kia Seltos was officially adopted after a mid-life cycle upgrade. However, this name change did not affect the pricing strategy, which has been a key factor in attracting the attention of Chinese consumers.

In the US, the Kia Seltos has a starting price of $24,690 (over 646 million VND) and goes up to $31,190 (over 816 million VND) for the highest trim. In China, however, the car is priced much lower, ranging from 109,900 CNY (401.3 million VND) to 159,900 CNY (583.87 million VND).

Notably, the South Korean automaker offers special discounts exclusively for the Chinese market. For instance, the Kia Seltos Luxury trim, priced at 129,900 CNY (474.33 million VND), is currently on offer at a significant discount of 77,900 CNY (284.85 million VND). This price is so low that the vehicle almost seems to have “dropped a segment” into a more affordable category when compared directly to the same model in the US or Vietnam.

Although the design is nearly identical across markets, the Kia Seltos in China offers different engine options that are less powerful. Specifically, the Chinese market Seltos is equipped with a 1.5L naturally aspirated engine producing 113 horsepower or a 1.4L turbocharged engine with 140 horsepower. Both versions come with an IVT automatic transmission and front-wheel drive.

In contrast, the Kia Seltos sold in the US offers more powerful engine options: a 2.0L naturally aspirated gasoline engine with 146 horsepower or a 1.6L turbocharged engine with up to 190 horsepower. Additionally, US customers have the option of choosing all-wheel drive, which is not available on any of the Chinese market trims.

In Vietnam, the Kia Seltos also has unique engine configurations, including both 1.5L naturally aspirated and 1.5L turbocharged options. The current price range in Vietnam is from 599 million VND to 764 million VND, significantly higher than the listed price in China.

The lower pricing of the Kia Seltos in China can be attributed to local production, which reduces transportation costs, import duties, and other taxes. The Chinese government also tends to offer tax incentives and subsidies for domestically assembled vehicles, especially those with smaller engine displacements. Additionally, due to competition from domestic automakers, foreign carmakers often adjust their pricing strategies to align with local purchasing power and consumption habits.

TH (Tuoitrethudo)