I am standing in Newport Beach, California, next to a Kia that is not supposed to make me feel this way. It is the smallest SUV in Kia's American lineup, and it is dressed like it forgot that memo entirely. Later in the morning I climb behind the wheel of the fully loaded 2027 Kia Seltos X Line SX, the only trim that gets the upgraded 1.6L turbo engine, and I will not be able to tell you everything until the embargo lifts. But last night at the Kia hospitality dinner, over conversations with Kia representatives and fellow automotive reporters, I learned enough to bring you this story, but later in the day I will tell you even more. So return to Torque News later today if you are reading this story in the morning or afternoon.
The Soul Is Gone, So Kia Built Something Tougher To Replace It
Here is the part most shoppers have not connected yet. Kia is not positioning the 2027 Seltos as a shrunken Telluride, even though it borrows that SUV's face and stance on purpose. It is filling the space the Kia Soul left behind when that unconventional little hatchback rode off into the sunset.
Think of the 2027 Seltos as the Soul's more masculine, more grown up cousin, one that swaps hamster commercials for real ground clearance and a turbocharged heart.
For years, the story of the smallest SUV in almost any lineup followed the same script. You accepted cloth seats. You accepted a tiny screen. You accepted an engine that wheezed at highway speed and a stereo that sounded like it was playing from the bottom of a well. That was the trade you made for a lower payment. Our own 2021 Seltos SX Turbo AWD review on Torque News proved the old Seltos already fought that stereotype harder than most. The 2027 model does not just fight it. It walks away from it entirely.
What A Fully Loaded Entry Level SUV Actually Looks Like Now
My test vehicle for today's drive carries heated and ventilated seats, a panoramic sunroof, Harman Kardon audio, a surround view camera, a memory driver's seat, a heated steering wheel, a power liftgate, standard AWD, and the 190 hp turbo engine. Read that list again and ask yourself when a Kia this small last needed a paragraph that long to describe its options sheet.
Kia is no longer asking you to step up to a Sportage or Telluride to feel like you are driving something premium. That used to be the whole business model of a compact crossover lineup. Sell the small one cheap and thin, then dangle the good stuff two trims up. The 2027 Seltos throws that playbook out the window, and I suspect Kia's own dealers are still catching up to what that means for cross shopping.
This is why in the title I wrote that Kia is redefining the idea of an "entry-level SUV."
Under The Hood, And Why The Hybrid Matters More Than It Sounds
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The 2027 Seltos continues to produce 190 hp and 195 lb ft of torque from its 1.6L turbo, paired with an 8 speed automatic and standard AWD, rated at 24 city and 30 highway. That carryover engine already proved itself worthy back when I wrote 5 Reasons To Buy The Seltos, and it remains the enthusiast's pick in this lineup.
The Hybrid Is Coming, Isn't Just About MPG, And Changes Who Shops Seltos At All
By early next year, Kia adds a Seltos Hybrid pairing a 1.6L engine with an electric motor and a new rear eAxle, giving the hybrid its own AWD system independent of the gas drivetrain. We do not have final power or fuel economy figures yet, but our estimate lands around 180-190 hp. Kia has been teasing a Seltos hybrid for years, and now it is finally real.
Here is why that one engine choice matters more than a spec sheet suggests.
The hybrid broadens the Seltos' appeal to buyers who might have driven straight past the Kia lot toward a Toyota or Honda showroom out of habit. It lets Kia compete on efficiency without abandoning the turbocharged, performance minded version for the shopper who wants to feel something when they merge onto the highway. Offering both personalities under one nameplate, efficient and energetic, is a genuinely strategic move, not a marketing afterthought.
Sizing Up The Competition, Including The One That Beat It Before
The 2027 Seltos is Kia's smallest and most affordable SUV, and it goes directly after the Subaru Crosstrek and Honda HR V. That is not a new fight. Kelley Blue Book once ran a head to head between the Crosstrek and the previous Seltos and the older Kia still came out ahead on value, even while conceding ground clearance to the Subaru. The 2027 redesign closes gaps the old car could not, particularly on cabin tech and interior space.
According to Edmunds, which drove the 2027 Kia Seltos Hybrid's early version in Korea, "Kia's cheapest, smallest SUV could prove to be one of its best." That is a notable statement from an outlet that does not hand out praise casually, and it lines up with what I am hearing from other journalists here in Newport Beach tonight.
The Design Borrows From Kia's Best, And Mostly Earns It
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Kia nailed the design of the flagship Telluride, and that design language translates nicely down to the smaller Seltos. The new model grows about 1.8 inches longer overall with a 2.4 inch stretch in the wheelbase, landing at 174.4 inches long, close to the K4 Hatch in footprint but taller and wider. The X Line package, available on the S and SX trims, adds a rugged, sporty stance. The Terrain Brown paint is lifted straight from the Telluride's palette and pairs well with the black accents, though I am personally not sold on the 19 inch black wheels on this trim.
Inside, the Seltos offers best in class space and a standard 12.3 inch touchscreen with wireless Apple CarPlay and Android Auto. This top trim adds heated and cooled front seats, a panoramic sunroof, a 360 degree camera, a power liftgate, a 10 way power driver's seat with memory, and that Harman Kardon sound system I mentioned earlier. Kia's engineers have been vocal about applying lessons from the 2027 Telluride's own turbo reliability work across the smaller SUV lineup, which should ease concerns for buyers who remember when turbo engines had a shaky reputation.
Why This Matters More Than One New SUV
The lesson here is simple, even if the SUV market rarely learns it. Treating your entry level buyer like someone who deserves less than your best work is not a savings strategy, it is a trust problem waiting to surface at trade in time. Kia figured that out with the Telluride, applied it to the Sportage, and now it has reached all the way down to its cheapest SUV. That is how you build loyalty that survives a recession, a gas price spike, or a competitor's flashy new ad campaign.
The new Seltos starts at a reasonable $24,990, but our fully loaded test car with the Prestige Package rang up at $37,230. My detailed first drive review, with real seat time, real roads, and real answers about how that turbo engine actually drives, will be published here at Torque News, God willing, on 7/21 at 9am EST. Stay tuned and return to Torque News to check it out.
Now, I have an interesting question. Would you rather have the turbocharged Seltos today or wait for the hybrid version next year? And now that Kia has closed the gap between its cheapest SUV and its flagship, does the idea of an "entry level" Kia even make sense to you anymore? Tell me what you think in the comments section below.
Return tomorrow, or check our Torque News Home Page for more interesting automotive news articles.
Images by Armen Hareyan.
About The Author
Armen Hareyan is the founder and Editor-in-Chief of Torque News and an automotive journalist with over 15 years of experience writing car reviews and industry news. Now based in the Charlotte region (Indian Land, SC, he founded Torque News in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News on X, Linkedin, Facebook, and Youtube. Armen holds three Masters Degrees, including an MBA, and has become one of the known voices in the industry, specializing in the landscape of electric vehicles and real-world stories of actual car owners. Armen focuses on providing readers with transparent, data-backed analysis bridging the gap of complex engineering and car buyer practicality. Armen frequently participates in automotive events throughout the United States, national and local car reveals and personally test-drives new vehicles every week. Armen has also been published as an automotive expert in publications like the Transit Tomorrow, discussing how will autonomous vehicles reshape the supply chain, and emerging technologies in vehicle maintenance.
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