Kia quietly axes its cheapest car and last hatchback on sale in NZ

The local arm of Korean carmaker Kia has confirmed that it has dropped the affordably priced Picanto from its line-up, subsequently axing the last hatchback it sold in New Zealand. 

The Picanto was one of the cheapest new cars on sale, and one of the only cars priced underneath $25,000 up until last year. Kia New Zealand quietly removed the model from its local website in late 2025.

A Kia New Zealand spokesperson confirmed the update with a brief note, stating that the Picanto “was removed from the Kia NZ new model portfolio last year”. 

The Picanto is the latest hatchback to be dropped by Kia New Zealand, following in the footsteps of the Cerato and Rio. Our market is also set to miss out on the Cerato’s hatchback replacement, the K4, as well as its fully electric sibling, the EV4 hatch (we do take the EV4 sedan). 

By contrast, Kia Australia still offers the Picanto, as well as the new K4 hatchback. 

Whilst Kia New Zealand did not explain why the Picanto was culled, lack of demand for small hatchbacks is the likely cause. The segment has struggled in recent years amid the onslaught of new crossovers. Out of New Zealand’s 25 best-selling cars last year, just two were hatchbacks; the Suzuki Swift and Toyota Corolla.

The Picanto’s departure means the Kia Stonic is now the marque’s cheapest car. Whilst the Stonic — which just received a comprehensive update for 2026 — has the silhouette of a hatchback, Kia lists the model as an SUV. It features a slightly lifted suspension set-up and body cladding. 

The Picanto was on sale in New Zealand for two decades, spanning three different generations. The current Picanto has been on sale with minimal changes since 2017, with no word yet on a replacement. 

The Picanto and its Cerato and Rio counterparts are part of a growing count of cheap hatchbacks that have been dropped from the New Zealand market in recent years. 

Other models to disappear from showrooms include the Mitsubishi Mirage, Ford Fiesta, Ford Focus, Hyundai i30, and the Volkswagen Polo. Some of these models remain on sale in other markets, whilst others — like the Fiesta and Focus — have been dropped globally.