Hyundai and Kia share a parent company, but in Australia they operate as fierce competitors. Hyundai's local chief operating officer, Gavin Donaldson, has made it clear he wants to beat Kia on the sales charts and push toward the top three nationally. That kind of competitive pressure between sister brands is exactly the dynamic that benefits new car buyers.
Here's how to take advantage of it.
What's Going On
Kia overtook Hyundai in Australian sales back in 2023 and has held the lead since. In 2025, Kia sold 82,105 vehicles compared with Hyundai's 77,208. The gap is largely attributed to Kia's dominance in the people mover segment, where the Carnival outsells the Hyundai Staria by a ratio of almost 10 to 1.
Hyundai isn't sitting still. The brand posted a 7.7 per cent increase in sales for 2025 and finished fifth nationally behind Toyota, Ford, Mazda and Kia. Hybrid sales were a standout, with Hyundai placing second behind Toyota on hybrid volume. The Tucson and Kona hybrids together accounted for more than 20,000 sales.
Donaldson told media at the launch of the new Hyundai Elexio electric SUV that he wants to move up from fifth to fourth, then third, and he's not putting a ceiling on the brand's ambitions. The product pipeline supports that goal, with the new Tucson, updated Kona, Elexio and other models in the pipeline for 2026 and beyond.
The rivalry is expected to intensify as both brands bring new models to market and fight for the same pool of buyers.
The Buyer Impact
When two brands from the same corporate family are fighting each other for sales, the pressure on dealers intensifies. Both Hyundai and Kia dealerships are under pressure to hit monthly and quarterly volume targets. That pressure creates negotiating room for you.
Hyundai dealers, in particular, are motivated to close deals to narrow the gap with Kia. If you're considering a Tucson, Kona, i30 or any other Hyundai model, the brand's desire to grow market share works in your favour.
Kia dealers, meanwhile, won't want to lose ground. They'll match or beat competitive offers to protect their lead. This dynamic is especially strong in segments where Hyundai and Kia compete directly, such as mid-size SUVs (Tucson vs Sportage), small SUVs (Kona vs Seltos) and sedans (i30 Sedan vs Cerato).
Where Timing Matters
The sales competition between Hyundai and Kia peaks at the end of each month and intensifies further at the end of each quarter. March, June, September and December are the months where dealer flexibility is typically at its highest.
Hybrid models from both brands are in strong demand, but supply has been increasing. The Tucson Hybrid and Kona Hybrid are now more readily available than they were 12 months ago, which means dealers can offer more competitive pricing without relying on waitlists to justify full retail.
Watch for the arrival of the Hyundai Elexio. New model launches often come with introductory pricing and promotional offers designed to generate early momentum. If Hyundai is serious about challenging Kia, expect aggressive launch pricing on the Elexio to build volume quickly.
How to Get the Best Deal
Get quotes from both Hyundai and Kia dealers for comparable models. If you're looking at a Tucson, also quote a Sportage. If you're considering a Kona, quote a Seltos. Present each brand's offer to the other and let them compete for your business.
Use Carseekers to get multiple dealer quotes without having to visit each showroom individually. The time you save translates directly into negotiating power, because you arrive with data rather than guesswork.
If you can be flexible on colour or specification, tell the dealer. Dealers have more room to negotiate on stock that's already on the floor versus a factory order. A dealer sitting on a Tucson in an unpopular colour will give you a better deal than one ordering your preferred spec from the factory.
Bottom Line
The Hyundai-Kia sales rivalry in Australia is a gift for buyers. Both brands offer strong products with competitive warranties, and the internal pressure to outperform each other translates directly into better deals at the dealership.
Don't pick a side based on loyalty. Pick the car that offers the best combination of product, price and deal. And use the rivalry to your advantage every step of the way.
Considering finance for your next car? Loanseekers can help you explore car loan options.
The finer details
Your questions answered.
Are Hyundai and Kia competing against each other in Australia?
Yes. Despite sharing a parent company, Hyundai and Kia operate as fierce competitors in Australia. Hyundai's local chief has explicitly stated the goal of beating Kia on the sales charts. This intra-group competition benefits buyers because both brands push harder on pricing and features to win customers from the other.
Can I use Hyundai vs Kia competition to negotiate a better deal?
Yes, directly. Getting pricing from both a Hyundai dealer (e.g., Tucson vs Sportage) and a Kia dealer and presenting the competitive quote is a legitimate and effective negotiation tactic. Both brands know buyers shop across the pair, and dealers will often match or beat a competing sister-brand quote to close the deal.
Is the Hyundai Tucson or Kia Sportage better value in Australia?
Both offer excellent value and are closely matched on specification, pricing, and driving quality. The Tucson has slightly more interior space; the Sportage has stronger driving character in GT Line trim. Kia's seven-year warranty offer (on some models) beats Hyundai's five-year unlimited cover. The better value depends on your specific use case and which dealer has more negotiating room.
Does Hyundai or Kia have better resale values in Australia?
Kia has a slight edge on resale values in most segments based on Australian used car market data. Both are well ahead of most Chinese brands and competitive with Mazda and Honda. The difference is small enough that deal quality at purchase is more important than the modest resale gap.
Which brand has a better dealer network — Hyundai or Kia — in Australia?
Both have comprehensive dealer networks across Australian capital cities and most major regional centres. Coverage is broadly comparable. For very remote or rural locations, check which brand has the closest service centre to your address before committing to either.
Are Hyundai and Kia service costs similar in Australia?
Yes. Service costs for Hyundai and Kia are broadly comparable across equivalent models as they share much of the same mechanical architecture. Both offer capped-price servicing programs. Compare the specific capped-price schedules for the models you are considering as the per-service cost and interval spacing varies by model.
