Another day, another sub-$20,000 car gone forever.
Industry publication Automotive News reports, “Kia America’s Rio subcompact car will not return for the 2024 model year, the company confirmed. It follows the demise of its small Hyundai counterpart, the Accent, discontinued after the 2022 model year.”
It follows the demise of quite a few small, inexpensive cars. The Chevy Spark, America’s least-expensive new car for several years, left the market in 2022. Last week, reports emerged that Mitsubishi would soon cancel its Mirage subcompact car.
The Mirage, we should note, may outlive the Rio. Mitsubishi hasn’t named an end date for its cheapest car. If Automotive News is correct, Kia has.
But we’re not sure they are correct. Reached for comment, a Kia spokesperson told us the company “has not confirmed this news.”
The Sub-$20,000 Car Is Disappearing Fast
If it is true, the news further confirms what we all knew – the cheap car is dying. New cars are becoming increasingly the province of wealthier, higher-credit buyers. Automakers are tailoring their efforts to chase their attention.
In December 2017, automakers produced 36 models priced at $25,000 or less. Five years later, they built just 10. The 2023 Kia Rio starts at $16,750 for the sedan and $17,690 for the Rio 5-Door hatchback variant.
Sub-$25,000 cars made up almost 13% of new car sales at the end of 2017. Less than 4% of new cars sold last December fell into that price range.
It doesn’t help that so many cars still sell for more than sticker price.
Today, there are five cars on the U.S. market with list prices under $20,000 – the Kia Rio, Kia Soul, Hyundai Venue, Mitsubishi Mirage, and Nissan Versa. Last month, just one – the Mirage – sold for less than $20,000 in the average transaction.
So Is the Subcompact Car
With the Rio’s possible disappearance, two of the remaining three will be arguably compact SUVs. The Soul and Venue both ride a bit higher than the typical subcompact car and have the high roofline associated with sport utility vehicles, even if they are likely too small and underpowered to perform some of the feats people associate with traditional sport utility vehicles.
We should point out that there are still Rio models for sale on Kia dealer lots today. The Rio is known for its value pricing, standard wireless Apple CarPlay and Android Auto, and 10-year/100,000-mile powertrain warranty, making it a long-term bargain. Its 41 mpg highway fuel economy adds to the car’s strong value proposition. At just 120 horsepower, its 1.6-liter 4-cylinder engine isn’t going to win many drag races.
But it will embarrass a 76-horsepower Mirage if the opportunity presents itself.
