Kia’s NZ boss agrees we have too many car brands, but says it’s too late to cap them

The head of Kia New Zealand says this country has more car brands than it can support, and that it’s too late to do anything about it.

Managing director Todd McDonald made the comments at the launch of the new Seltos hybrid at Eden Park on Friday, a day after we reported that Australian dealers want their government to stop any more brands arriving.

McDonald says New Zealand had 46 brands in 2016 and has 70 this year. The NZ Autocar new car price list covers 68, with the difference mostly down to how GWM’s sub-brands are counted. Over that time, four brands have consistently accounted for about half of all new car sales here.

“What’s more important for the automotive industry in New Zealand is that in 2026 we’ve got 70 brands. That means 66 brands are chasing 50% of the market. It’s actually unsustainable. It doesn’t work for the size and volume of the New Zealand market,” he says.

October’s registrations show the same pattern. Toyota, Kia, Mitsubishi and Mazda took just over half of all new passenger car sales between them, while seven Chinese brands, GWM, BYD, MG, Chery, Jaecoo, Geely and Leapmotor, almost doubled their combined share from 11.1% to 21.2% in a year.

Too late for a cap

Australia’s dealers have asked for a pause on new brands, and a cap on licences after that. Asked whether New Zealand could do the same, McDonald says it’s too late.

“They’re already here and they’re already operating. In my opinion, we’re effectively already in a position where we’re oversaturated for the size of our market.”

A cap would also be hard to square with New Zealand’s trade commitments. Several of its free trade agreements, including the one with China, prohibit quotas and similar restrictions on imports, which leaves standards such as safety and emissions rules as the main way to control which vehicles come in.

Asked which brands might go, McDonald says: “Time will tell. I think there’s risk across the board. Traditionally there have been four brands at the top. There may be five in future, but there’s certainly risk among the other brands.”

The Colonial Motor Company, which owns Ford, Mazda, BYD, Kia, Mitsubishi and Nissan dealerships around the country, made a similar point in its annual report in September, saying the market had reached “an unsustainable level that will result in brand consolidation”.

What it means for buyers

“In our view there are far too many new brands converging on the market at once that are not created equal and it must be a daunting prospect for new vehicle buyers to decide where to place their investment,” Colonial chief executive Alex Gibbons said.

The Australian dealers have warned that when a brand pulls out, buyers can be left with faster depreciation, slower parts supply and longer repair times.

Kia is one of the four at the top. It says it has sold 9,750 vehicles here so far this year, close to 1,000 more than in the whole of 2025, and expects to pass 10,000 by the end of December. National sales manager Justin Benzie says 80% of its dealers have already beaten last year’s full-year sales. The new Seltos hybrid starts at $39,990.