Kia's little Seltos has big shoes to fill

SAN ANTONIO — An alternative name for Kia's new large crossover, the Telluride, underscores just how well it's doing after nearly a year on the market. The "Sell-u-ride," as some Kia dealers and insiders call it, is still transacting near sticker price because of strong demand.

Enter the subcompact Seltos crossover arriving in showrooms this month to carry on the tradition. If Kia meets its goals with the new vehicle, devising a substitute moniker won't be hard. "Sell-tos" and "Sell-tons" come to mind. It's already being called a "baby Telluride" for its looks and features.

Indeed, the Telluride's success — selling 58,604 copies last year amid tight supplies and winning 2020 North American Utility Vehicle of the Year — is having a big impact across Kia's growing lineup of crossovers. The chiseled exterior and feature-packed interior of Kia's halo CUV also will likely find their way into the next-generation Sportage and Sorento.

"We are leveraging what we did well with Telluride, and given a similar great product, we think we can repeat that sort of approach with Seltos," Michael Cole, president of Kia Motors America, told Automotive News on the sidelines of a media event here.

"We felt the Telluride was the halo model for us, and we positioned it very much as that big, bold, boxy, rugged, tough vehicle — the adventure vehicle," Cole said. The Seltos, he said, follows the same blueprint in a smaller, more affordable package.

Whether the Seltos can echo the Telluride's sales success is a different matter.

The subcompact crossover segment is smaller than its large counterpart in terms of sales, and there's fierce competition and fresh products at similar price points. Entry crossovers run from just under $20,000 to just over $30,000 for rivals such as the Subaru Crosstrek, Chevrolet Trax and the new Mazda CX-30.

"Repeating the volumes of Telluride may be a bit dodgy. Seltos is a global car and it's having huge success in other markets, so capacity is always going to be a challenge," Cole said. The Seltos is built in Korea while the Telluride is made in the U.S., giving Kia some flexibility to increase local supply.Cole isn't making any firm sales projections for the Seltos, but he does see it as a standout in the segment both from a value equation and because the upright SUV styling and relatively large interior space compared with its rivals is what consumers say they want. The Seltos also competes on the margins with Kia's own Soul hatchback, which does not offer awd.

"I do think this vehicle will attract a lot of new and conquest customers to the brand, but inevitably we'll have some consumers probably move out of one our existing products into the Seltos as well, and that's fine," Cole said.

While Kia dealers were originally clamoring for an awd version of the Soul, what they got was a better strategy: The new-generation Soul from last year could maintain its quirky character and futuristic styling elements while the Seltos brings a taller shape and all-wheel drive.

"Considering where the market has moved to in terms of this trend toward SUV, I believe having an entry SUV with the styling of Seltos is a more desirable product than having an all-wheel-drive Soul," said the Kia executive. Their distinct positioning, despite their similar size, is also reflected in the price.

There are actually two entry-level versions of the Seltos, and neither is a true base model.

For $23,110 including shipping, Kia offers either an awd LX trim with an automatic transmission, 8-inch infotainment screen and 17-inch alloy wheels, or a front-wheel-drive S trim that adds an advanced safety suite, LED lighting, a roof rack and upgraded seats. There is no fwd LX at a discount.

"We wanted to focus on the all-wheel drive as the core part of the segment for the vehicle," Cole said. "But as we were looking at that, we were also mindful of what that would mean in terms of the entry price point, and we said 'Why don't we offer this [entry] alternative?' " he said. "If someone wants a higher level of specification, we'll offer it, but it will be with two-wheel drive."

Kia also distinguished the higher trim levels by dialing in more power. Rather than the standard engine with 147 hp, the two top versions get a turbo motor making 175 hp. The very top SX Turbo also gets a dual-clutch automatic transmission rather than the continuously variable transmission. That trim, $29,100 with shipping, also has a big touch screen, Bose audio, leatherette seats, LED headlights and a long list of safety and convenience features. Just as the top Telluride trim has been compared to a luxury vehicle, Kia sees the loaded Seltos as a viable alternative to premium brands.

"We've got a vehicle that's going to compete in the mainstream segment, but it's got packaging and equipment at a level that is a segment above — or let's say a class above," Cole said. "Maybe moving into what the premium or luxury brands might be offering in their compact or even subcompact SUVs."

But Cole is also realistic: The Seltos will be marketed as an adventure utility with lots of safety technology and convenience features, not as a luxury product. "The lead story of the vehicle is here's another tough, rugged little SUV from Kia," he said.

With the addition of the Telluride and Seltos into volume crossover segments where it was previously absent, Kia is rapidly transforming from a purveyor of economy cars and competent sedans into a light-truck brand. It's not Jeep. But with modern interiors and stellar build quality, it's not trying to be.

"These vehicles are helping people to see the brand in a different way. We're not just the rational, affordable brand," Cole said. "We're appealing to consumers now on emotional benefits. Telluride has done this. It's capturing consumers on emotional benefits probably even more than rational benefits."