Kia will discontinue production of its first purpose-built vehicle (PBV), the Niro Plus, in October.

According to the automotive industry reports on April 30, Donghee Auto, the manufacturer of the Niro Plus, has recently notified its suppliers that it will cease production of the vehicle in October to prevent the accumulation of unused inventory. The company is a joint venture between Kia and the parts company Donghee Holdings, and it manufactures the Niro Plus along with other models such as the Stonic, Morning, and Ray.

Kia's Niro Plus /Courtesy of Kia

Launched in 2022, the Niro Plus is an electric taxi based on the first-generation Niro EV. Although the Niro EV transitioned to the second generation that same year, the Niro Plus has only been sold as a derivative of the first generation. It features a 64.0 kWh battery that allows a maximum range of 392 km on a single charge and includes a taxi-specific infotainment system with an integrated meter on the central screen.

The decision to discontinue the Niro Plus seems to be due to decreasing sales; 4,713 units were sold within eight months of its launch in May 2022, but sales dropped to 2,916 units last year, and only 88 units were sold in the first quarter of this year.

Electric taxis have also been affected by the slowdown in the EV market. According to CarIsYou Data Lab, the number of newly registered electric taxis last year totaled 12,552, a 20.4% decrease from the previous year’s 15,765. The current electric taxis on the market in South Korea include Hyundai’s Ioniq 5 and Ioniq 6, and Kia’s EV6 and Niro Plus, with the Ioniq 5 accounting for about half of all electric taxi sales.

This year, the reintroduction of liquefied petroleum gas (LPG) taxis has further narrowed the market for electric taxis. Hyundai discontinued the seventh-generation Sonata New Rise LPG taxi in July last year due to deteriorating profitability, but relaunched it earlier this month as the eighth-generation The Edge following industry backlash over the lack of alternatives. Kia is also reportedly considering relaunching the discontinued K5 LPG taxi from 2021.

Given that the Niro Plus is based on the Niro EV, it may potentially be released as a new model in the future. The Niro is expected to undergo a facelift next year.

This article was originally published on April 30, 2024.