2025 Kia Seltos: Why It’s Much Cheaper in China Than in the U.S.

If you have seen car prices in other countries, you may have realized something interesting: the 2025 Kia Seltos is much cheaper in China than in the United States. This seems odd at first glance. Why is the same model vehicle priced so low in one of the largest markets in the world (with tons of cars being sold), while US customers are practically paying twice the price?

U.S.-Spec 2025 Kia Seltos: Features and Powertrains

In the United States, the 2025 Kia Seltos will build on the previous model's evolutionary design language with enhancements in line with Kia's 2021-2025 design overhaul: 

• updated front grille and new LED headlamp to match 
• an upgraded cabin with improved materials 
• dual 10.25 screens on the upper trims 
• wireless Apple Car Play and Android Auto 
• The Seltos continues with two engine options: 
• 2.0L I4 with 146 hp (with CVT).
• 1.6L Turbo I4 with 195 hp (with 8-speed auto).

With available all-wheel drive, a full suite of ADAS/ safety features, and a nicer interior, the Seltos continues to fulfill its purpose as a compact SUV while pushing into premium- compact territory.

The China-Spec Seltos: A Different SUV Altogether

In China, the Seltos nameplate is known as the Kia KX3, and although it looks similar to the U.S. version at first glance, it is fundamentally different from the U.S. version in terms of mechanical, structural and other materials.

The differences include

• Powered by a smaller 1.5L naturally aspirated engine (113 hp)
• Only with CVT and FWD
• More basic suspension design
• A smaller infotainment screen with less premium content
• Limited safety technology
• Locally built by Dongfeng-Yueda-Kia, a joint venture in China

The end result is a vehicle that meets the expectations of Chinese consumers that are price sensitive, particularly in extremely dense urban settings.

Price Comparison: United States vs. China

Why Is It So Much Cheaper in China?

The answer lies in localized manufacturing, product positioning, and reduced feature sets:

1. Localized Assembly:
   Kia builds the Chinese version locally, drastically cutting labor and shipping costs.

2. Smaller Engine, Fewer Features:
   The KX3 skips turbocharging, advanced transmissions, AWD, and most premium options. This saves thousands.

3. Segment Expectations:
   In China, buyers in this segment expect basic urban mobility—not performance or luxury.

4. Tax Benefits:
   China incentivizes smaller, low-displacement engines, and the KX3 fits within those tax-efficient categories.

5. Regulatory Standards:
   U.S. crash and emissions standards are far more demanding, requiring additional reinforcements, tech, and testing—adding to cost.

Can the U.S. Get the Cheaper Version?

Technically, no—and practically, it wouldn’t work. The Chinese version does not meet U.S. safety, emissions, or performance expectations.

Additionally:

• The 1.5L engine is underpowered for U.S. highways

• It lacks AWD, critical for northern or off-road buyers

• Interior and safety standards fall short of U.S. norms

• Importing one wouldn’t be legal or cost-effective

Conclusion

It’s important to reiterate that while this is the 2025 Kia Seltos in China, it is a different car entirely. The lower price is not because U.S. buyers overpaid for it; it is because the Chinese Seltos is a vehicle that is built for a different audience with different expectations.

For U.S. buyers, the Seltos is still a smart, well-rounded offering that provides an appropriate level of technology, comfort, and performance. And ultimately, when you think about what all you're getting, it is fair to say that the price tag reflects much more than the badge.

Source(Image / Thumbnail): carscoops