If you’ve been waiting for a more fuel-efficient option in the Kia small car lineup, your patience is about to pay off. The Korean automaker has confirmed that both the upcoming K4 Hatchback and existing K4 Sedan will receive a new, more efficient engine option when they arrive in Australian showrooms during the fourth quarter of 2025.
This news comes as welcome relief for budget-conscious drivers who want better fuel economy without sacrificing reliability or practicality.
What’s New Under the Hood?
The star of the show is Kia’s Atkinson-cycle 2.0-litre four-cylinder petrol engine, paired with what the company calls an Intelligent Variable Transmission (IVT) – essentially a continuously variable transmission (CVT) with a fancier name.
This isn’t entirely new technology for Kia. You’ll already find this same powertrain doing duty in the popular Seltos small SUV, as well as its Hyundai cousins like the i30 Sedan and Kona crossover.
Power vs Efficiency Trade-off
Here’s where things get interesting for practical buyers. The new Atkinson engine produces slightly less power than the current 2.0-litre engine – 110kW and 180Nm compared to 112kW and 192Nm. That’s a minimal difference you probably won’t notice in daily driving.
What you will notice is the improved fuel efficiency. The current setup drinks 7.4 litres per 100km, but the new Atkinson engine promises significantly better thirst levels.
Real-World Benefits for Australian Drivers
Lower Running Costs
The most immediate benefit? Your wallet will thank you at the fuel pump. Based on similar applications in other vehicles, expect fuel consumption to drop to around 6.1 litres per 100km – that’s a substantial improvement that adds up over thousands of kilometres.
Reduced Environmental Impact
Kia’s product planning team has confirmed this new engine delivers approximately 30 grams per kilometre improvement in CO2 emissions compared to the current 2.0-litre unit. That’s not just good for the environment – it also helps Kia meet Australia’s New Vehicle Efficiency Standard requirements.
Comparison: Current vs New Engine Options
| Engine Specification | Current 2.0L MPI | New Atkinson 2.0L |
|---|---|---|
| Power Output | 112kW/192Nm | 110kW/180Nm |
| Transmission | 6-speed automatic | IVT (CVT) |
| Fuel Consumption | 7.4L/100km | ~6.1L/100km (estimated) |
| CO2 Emissions | 167g/km | ~139g/km (estimated) |
| Availability | Current K4 Sedan | Q4 2025 K4 Hatch & Sedan |
Market Position and Timing
Why This Matters Now
The timing couldn’t be better for Kia. The small car segment remains competitive, with the Toyota Corolla leading sales at 1,576 units in May, followed by the Hyundai i30 at 909 units and Mazda 3 at 735 units. The K4 managed 577 sales in its sedan-only form, which shows promise once the hatchback variant arrives.
The Hatchback Advantage
Australian buyers have consistently shown preference for hatchback body styles in the small car segment. The addition of a K4 Hatch should significantly boost sales, especially once it receives its ANCAP safety rating – a crucial requirement for fleet buyers who represent a large portion of this market segment.
What About Hybrid Options?
While Kia hasn’t confirmed timing for a K4 Hybrid variant, it’s almost certainly in the works. The company has the technology ready – a 1.6-litre hybrid system producing 104kW and 265Nm that’s already proven in the i30 Sedan and Kona hybrids.
For now, the new Atkinson engine represents the most efficient non-hybrid option available.
Should You Wait?
If you’re currently shopping for a small car and fuel efficiency ranks high on your priority list, it might be worth waiting until late 2025. The improved economy and lower emissions make a compelling case, especially if you’re planning to keep the car for several years.
However, if you need a car immediately, the current K4 Sedan still offers good value and reliability. The power difference between engines is minimal for everyday driving.
The introduction of this more efficient engine demonstrates Kia’s commitment to meeting both environmental regulations and customer demands for better fuel economy. It’s a sensible evolution that maintains the K4’s practicality while addressing one of the key concerns for small car buyers – running costs.
For Australian drivers who want a reliable, efficient small car from a brand with an excellent warranty, the updated K4 range should be worth the wait.
Frequently Asked Questions
Q: When exactly will the K4 Hatchback with the new engine be available?
A: Kia has confirmed fourth quarter 2025 availability, likely coinciding with the 2026 model year production schedule.
Q: Will the new engine option cost more than the current version?
A: Kia hasn’t announced pricing details yet, but efficiency improvements typically come with minimal premium given the cost savings in fuel consumption.
Q: Can I get the current K4 Sedan with the new efficient engine?
A: Yes, the existing K4 Sedan will also receive the new Atkinson engine option alongside the hatchback debut in Q4 2025.
2026 Hyundai Palisade revealed with hybrid to rival Toyota Kluger
