Kia and Hyundai Class Action Lawsuit in Australia, Engine Defects, Claims, and 2025 Update
The Kia and Hyundai class action lawsuits in Australia involve allegations of defective engines affecting up to 500,000 vehicles sold since 2011, with the most recent development being a November 6, 2025 case management hearing in the Federal Court of Australia. Defendants include Kia Australia Pty Limited, Kia Corporation (South Korea), Hyundai Motor Company Australia Pty Limited, and Hyundai Motor Company (South Korea). The court ordered both manufacturers to produce additional warranty claim documents by September 26, 2025, and plaintiffs must file amended statements of claim with particularized engine defect theories by October 24, 2025.
What Is the Kia and Hyundai Class Action Lawsuit About?
Class action proceedings were filed on February 15, 2023, in the Federal Court of Australia, alleging that Hyundai and Kia sold vehicles with engines manufactured or designed defectively, and that both companies knew of engine issues since at least 2015 but continued selling affected vehicles in Australia.
The Hyundai case is action number NSD 131 of 2023, and the Kia case is action number NSD 132 of 2023. The Federal Court ordered that both class actions be jointly case managed.
The lawsuits target vehicles with 4-cylinder Theta II MPI, Theta II GDI, Gamma II GDI, or Nu GDI petrol engines, which allegedly exhibit faults including sudden loss of power while driving, increased oil and fuel consumption, smoke emissions, and in some cases, fire.
Who Are the Defendants?
The defendants named in these Australian class actions include:
- Kia Australia Pty Limited (Australian subsidiary)
- Kia Corporation (South Korean parent company)
- Hyundai Motor Company Australia Pty Limited (Australian subsidiary)
- Hyundai Motor Company (South Korean parent company)
The actions are being funded by Woodsford, a global litigation finance business, and the applicants are represented by law firm Johnson Winter Slattery.
What Vehicle Defects Are Alleged?
The class actions allege that numerous vehicles sold by Hyundai and Kia in Australia since 2011 were sold with engines manufactured and/or designed defectively, with the propensity to exhibit specific faults:
- Sudden loss of power, including while driving
- Increased oil consumption
- Increased fuel consumption
- Emission of smoke from the engine
- Complete engine failure
- Engine fires
The allegations focus on specific engine types: 4-cylinder Theta II MPI, Theta II GDI, Gamma II GDI, and Nu GDI petrol engines.
Manufacturing Defects Admitted by Defendants
In its July 2023 defense, Kia admitted that a small number of Kia Optima and Sorento vehicles were subject to a manufacturing process in which there was risk that excessive swarf would remain in the crankshaft assembly. Kia also admitted that engines in a small number of Kia Seltos vehicles were manufactured using brittle piston rings.
Hyundai admitted in its July 2023 defense that a small number of Hyundai i45 and Santa Fe vehicles were subject to the same swarf defect, and that engines in a small number of Hyundai Kona and Veloster vehicles were manufactured using brittle piston rings. Hyundai also admitted that defective software was installed in a small number of Veloster vehicles.
What Evidence Supports the Claims?
On August 28, 2024, the Federal Court delivered a judgment ordering Hyundai and Kia to produce most documents requested by lead applicants, rejecting the manufacturers’ attempts to produce only a sample set of documents.
The court ordered the defendants to produce further documents in three tranches in November 2024, January 2025, and March 2025. On July 16, 2025, the court ordered by consent that both manufacturers make discovery of additional warranty claim documents by September 26, 2025, and file verified lists of discovered documents by October 3, 2025.
The discovery process has been contentious. During case management hearings, the court heard concerns from lead applicants about the adequacy of documents discovered by both Hyundai and Kia to date, with arguments from the defendants that plaintiffs need to better articulate their engine defect theory.
What Legal Claims Have Been Filed?
The class actions assert violations of Australian consumer protection law:
Breach of Statutory Warranty
Plaintiffs claim that Hyundai and Kia failed to comply with the statutory warranty provided by the Australian Consumer Law that goods sold to consumers are of acceptable quality.
Breach of Express Warranties
The lawsuits allege that both manufacturers failed to comply with express warranties contained in their advertising material about the vehicles’ quality, reliability, durability, and safety.
Knowledge of Defects
Plaintiffs claim that Hyundai and Kia had or accumulated knowledge of the engine issues since at least 2015, when various recall notices were first issued for similar vehicles in the United States, but continued to sell them in Australia without notifying the Australian car-buying public except for very limited Australian recall campaigns.
What Damages Are Being Sought?
The class actions seek financial compensation for affected vehicle owners who have incurred out-of-pocket expenses related to engine faults in their cars, including expenses such as the cost of replacing engines, additional servicing, or rental cars.
The lawsuits seek compensation, not repair or replacement of affected vehicles. Group members will not be responsible for legal costs incurred in prosecuting the claims against Kia and Hyundai by the applicants. If the class action is successful, legal fees will only be deducted from the compensation awarded to group members, meaning group members will not be responsible for any legal fees if the lawsuit is unsuccessful.
Recent Court Rulings and Developments
August 2024 Discovery Ruling
On August 28, 2024, the Federal Court delivered its judgment in favor of lead applicants, ordering that Hyundai and Kia produce most documents requested. The judge rejected the car makers’ bid to produce only a sample set of documents.
September 2024 Production Orders
The court ordered Kia and Hyundai to produce further documents in three tranches: November 2024, January 2025, and March 2025.
July 2025 Consent Orders
On July 16, 2025, following applications by lead applicants for further and better discovery of documents pursuant to orders made in September 2024, the court ordered by consent that Hyundai and Kia make discovery of additional warranty claim documents by September 26, 2025, and file verified lists of discovered documents by October 3, 2025.
The lead applicants were ordered to provide Hyundai and Kia with amended statements of claim with additional particularization of the alleged engine defect theory by October 24, 2025.
November 2025 Case Management Hearing
The proceedings are next scheduled to be before the court for a case management hearing on November 6, 2025.
Current Litigation Status
The cases remain in the discovery phase, nearly three years after filing. The proceedings were commenced on February 15, 2023, with class actions potentially taking anywhere from six months to several years to be heard and determined or otherwise resolved.
Group members are automatically included if they purchased or leased an affected vehicle between January 1, 2011, and February 15, 2023, and did not acquire the vehicle in an auction or for purposes of resupply. Group members will be bound by the outcome unless they opt out of the proceedings.
Defense Responses
Both Kia and Hyundai contend that owners are not entitled to damages because they have remedied the issues, and any failure in relation to the piston rings occurred only because of the act, default, or omission of the supplier of the piston rings. Other than in respect of the small number of cars referred to in their defenses, both deny all of the allegations.
Separate ABS Defect Class Actions
Maurice Blackburn filed separate class actions in the Supreme Court of Victoria against Hyundai on December 22, 2022, and against Kia on March 10, 2023, relating to alleged defects in the Anti-Lock Braking System (ABS).
The ABS defect arises due to a manufacturing error which causes the electronic circuit board in the ABS module to short circuit when exposed to moisture, creating a risk of an engine compartment fire irrespective of whether the vehicle is on or off.
These ABS class actions are entirely separate from the engine defect cases filed by Johnson Winter Slattery in Federal Court.
Timeline of Events
February 15, 2023: Class action proceedings filed in Federal Court of Australia
March 24, 2023: Lead applicants ordered to file amended statements of claim
May 19, 2023: Hyundai ordered to file its defense to the amended statement of claim
June 7, 2023: Court dismissed Hyundai’s and Kia’s applications to inspect lead applicants’ vehicles
July 2023: Kia and Hyundai filed their defenses, making limited admissions about specific manufacturing defects
November 16, 2023: Court heard arguments on applicants’ requests for document production
December 21, 2023: Court ordered production of documents in 19-22 categories
January 31, 2024: Deadline for initial document production
August 19, 2024: Court heard lead applicants’ application for further document production
August 28, 2024: Court delivered judgment ordering Hyundai and Kia to produce most requested documents
September 6, 2024: Court ordered production of documents in three tranches
July 16, 2025: Court ordered by consent additional discovery of warranty claim documents
September 26, 2025: Deadline for additional warranty claim document production
October 3, 2025: Deadline for filing verified lists of discovered documents
October 24, 2025: Deadline for amended statements of claim with particularized defect theories
November 6, 2025: Scheduled case management hearing
Frequently Asked Questions
How many vehicles are affected by the Kia and Hyundai class action in Australia?
The lawsuits affect approximately 500,000 vehicle owners in Australia who purchased Hyundai and Kia vehicles from 2011 onwards. As many as 194,808 cars could potentially be involved across a range of models, including the best-selling Tucson and Sportage SUVs.
What vehicle models are included in the class action?
The class actions cover Hyundai and Kia models sold in Australia from 2011 to 2023 equipped with Theta II MPI, Theta II GDI, Gamma II GDI, or Nu GDI petrol engines. Specific models mentioned include Hyundai Tucson, Santa Fe, i45, Kona, and Veloster, as well as Kia Sportage, Sorento, Optima, and Seltos.
Do I need to register for the class action?
If you meet the criteria for group membership and your vehicle is one of the affected vehicles with the necessary engine type, you are automatically a group member and do not need to take any further steps to become one. However, vehicle owners can register their interest at www.hyundaiengineclassaction.com.au (for Hyundai vehicles) or www.kiaengineclassaction.com.au (for Kia vehicles).
When will the case be resolved?
Class actions can be quite long and could take anywhere from six months to several years for claims to be heard and determined or otherwise resolved. The case has been ongoing since February 2023 and remains in the discovery phase, with the next case management hearing scheduled for November 6, 2025.
How does this compare to the US Kia and Hyundai engine lawsuit?
In the United States, a settlement was reached affecting owners of around four million Hyundai and Kia vehicles, with compensation for out-of-pocket repair expenses, reimbursement for vehicles destroyed by fire, and goodwill payments. In the United States, Hyundai and Kia have been ordered to pay more than $750 million in penalties and settlements over allegations of engine defects. The Australian class action remains ongoing and has not reached settlement.
Are US vehicle owners affected by the Australian lawsuit?
No. The Australian class action only affects vehicles purchased or leased in Australia between 2011 and 2023. US vehicle owners with similar issues should consult with US attorneys regarding separate US class action lawsuits that have been filed.
What should I do if my Hyundai or Kia has engine problems?
If you have experienced or are currently experiencing issues with your engine, you should keep written records of any communications with Kia or Hyundai and the relevant dealer in relation to problems you are having with your vehicle. If your engine has recently suffered a serious failure such as complete engine failure or fire and has not yet been replaced, contact the class action team as an inspection of your vehicle may be of assistance in the conduct of the class action.
Sources:
- Federal Court of Australia case files: NSD 131/2023 (Hyundai) and NSD 132/2023 (Kia)
- Official class action websites: www.hyundaiengineclassaction.com.au and www.kiaengineclassaction.com.au
- Woodsford litigation funding announcements
- Johnson Winter Slattery legal filings
- Maurice Blackburn ABS defect class action documentation
Disclaimer: This article provides general information about the Kia and Hyundai class action lawsuits in Australia. It does not constitute legal advice. Vehicle owners considering joining the class action or seeking compensation should consult with qualified Australian attorneys familiar with consumer protection law and class action litigation.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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