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Kia and parent company Hyundai are having a rough time with electrified compact SUVs. Hyundai is pausing production of its Kona Electric for the 2026 model year, and Kia is pulling the plug on its Niro Plug-in Hybrid from the U.S. market.
Kia confirmed in a statement to Cars.com that “due to changing market conditions,” the Niro PHEV is discontinued for the U.S. market for 2026, although the hybrid and electric Niros will remain. The Niro PHEV joins the Stellantis plug-in hybrids and a growing list of vehicles that have also been dumped this year.
How long Kia will continue to sell any version of the Niro might be a valid question, however. The PHEV was priced more than $7,000 higher than the regular hybrid, which now starts at $28,885 (all prices include destination charges). The Niro EV, with its $41,195 base price, must be nervously eyeing the chopping block right now. Combined, all three powertrains managed just over 31,000 sales last year — nearly 20,000 fewer than the Soul, which got the axe for 2026.
Things are looking slightly better for Hyundai’s Kona. While the Kona Electric will be skipping the 2026 model year, Hyundai says there is “adequate stock” of 2025 models to support consumer demand and that the brand is currently planning to begin production of 2027 models this August.
The Kona Electric’s position as one of the most affordable EVs on the market likely grants it a degree of protection. We would not be surprised, however, to see the Kona Electric to return for 2027 with its lineup pruned from the four trim levels offered in 2025. The brand previously said the entry-level electric vehicle would have only the SE trim level for 2026.
Editor’s note: This story was updated Feb. 6, 2026, with confirmation from Kia on the Niro PHEV.
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