Production of the Sportage has been moved from Korea to Zilinia, home of the Cee'd, in an attempt to reduce shipping times and, the brand claimed, delivery levels of CO2.

To make it more appealing to European customers, the new model has been given a “Euro make-over” to improve driving dynamics, which were criticised in its predecessor.

By moving production to Europe, Kia claims it will be able to provide increased levels of quality control. The 2008 diesel Sportage is available now, and petrol models will follow in early 2008. Kia's sales forecast for the new model is 8,000 units for 2008, 1,000 more than the Sportage in 2007. Prices of the new model will range from £13,995 to £19,995.

Meanwhile Kia has announced that an upgraded engine and eco-friendly tyres means the revised 1.0-litre Picanto is now eligible for band B VED at only £35 per year. Other major changes to the Picanto are external for the most part, with a sporty-looking version, the Picanto 3, available for the first time. The new model has new front and rear bumpers, new headlights, rear clusters, bonnet and wing mirrors.

The launch model, Picanto Ice, comes with air conditioning. The carmaker's sales forecast for the new Picanto is 6,000 units for 2008. While this figure is just slightly higher than the Picanto's 2007 sales, Kia does not see very much room for growth on this already well-established model. “We are very happy with the sales targets now,” said a spokeswoman. Prices range from £5,995 to £7,995.