by Kia confirmed the Niro PHEV will not return for the 2026MY. Low sales and changing market trends led to the decision. The hybrid and EV versions will remain on sale in the U.S.
Model Discontinuation Due to Market Conditions
Kia brought the Niro to market with various powertrain types, including a conventional hybrid, a fully electric version, and a plug-in hybrid. Now the manufacturer is abandoning the last option due to “changing market conditions.” Ultimately, it seems this model simply never sold well enough to continue its production.
In a statement to the media, Kia announced that the 2026 model year Niro PHEV will no longer be offered in the U.S., effectively reducing the compact crossover lineup to only the standard hybrid and fully electric versions.
A Niche Model with Low Sales
Although the Niro has long been sold with three different powertrains, the plug-in hybrid was always a niche option. And despite being a model many would choose, it never gained significant popularity.
This is reflected in sales figures. Kia sold only 31,182 Niro models throughout 2025, making it one of the brand’s least-selling models, aside from fully electric offerings like the EV6 and EV9. Kia does not disclose sales by powertrain type, but it is widely believed that the PHEV version accounted for only a small fraction of that total.
Issues with Price and Tax Incentives
The timing of the discontinuation is also not coincidental. Since the Niro PHEV is imported from South Korea, it lost eligibility for the $7,500 federal electric vehicle tax credit in 2024 and is also subject to tariffs. Neither of these factors improves its value proposition.
With a starting price of approximately $36,000, including delivery, it cost about $7,000 more than the Niro Hybrid and only about $5,000 less than the Niro EV. It was an awkward middle ground that became harder to justify without incentives.
Memories of the Model and the Future of the Lineup
When journalists first tested it in 2023, they noted how it combined positive driving impressions with excellent fuel economy and a certain electric-only range. The ability for drivers to switch it to electric mode, gasoline-only engine mode, or use both together was also appreciated. Fortunately, the regular hybrid version of the Niro is still a fairly good offering for its price.
Kia’s decision reflects a broader trend in the automotive industry, where manufacturers are increasingly focusing on core hybrid and electric models, phasing out less popular variants. The remainder of the Niro lineup is likely to receive more attention and resources, which could lead to updates or new features for the hybrid and electric versions. For buyers specifically seeking a plug-in hybrid compact crossover, the market is becoming somewhat narrower, which could open opportunities for competitors or accelerate the development of new technologies in this segment in the future.
