A no-deal Brexit could put the price of new cars in Britain up by 8% according to Paul Philpott, president of Kia UK.
Leaving the EU on 31 October without a deal would see the UK revert to WTO rules, incurring a 10% tariff on the cars coming in from Europe and elsewhere.
Go deeper with GlobalData
Strangely, a possible post-Brexit FTA with South Korea could make Kia's cars coming from factories there cheaper than European-built models.
Philpott was speaking on the sidelines of the pan-European launch of the Xceed in Marseilles.
He added Brexit uncertainty makes the UK market for next year "almost impossible to predict".
He said: "If we leave the EU on 31 October 31 with no deal then our margins will be hit and we could see an increase of about 8% in prices – or around GBP1,700 to GBP2,000 a car.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"The UK market next year could be around two million but with a deal it could move up to somewhere about 2.2m.
"We also have to think about emissions regulations and we expect the UK to stay with the EU rules which require average emissions of 95g/km across the range next year.
"This presents a real challenge for all carmakers which is why it is important to build our electrification offerings."
The European new car market is running 3.1% down this year with nearly all major manufacturers suffering.
The only winners so far are Citroen, Seat, Volvo and Kia which are showing sales gains.
Kia is seeking to keep the momentum going with the launch of the Slovakian-built Xceed urban crossover which is expected to be one of the best sellers in the widened recently redesigned Ceed range.
Increased sales again this year will give the carmaker an 11th consecutive year of growth in Europe.
The Xceed joins a range which now features a hatchback, station wagon and shooting brake.
Early next year will see the addition of plug-in petrol and mild hybrid diesels.
PHEV will be available on the Xceed and Sport Wagon while the 48v mild hybrid will be offered across the range.
The new model enters a CUV/SUV market which accounts for 48% of all C-segment sales.
Kia Europe product manager Ioannis Roussis said the Xceed is an entirely new design based on the Ceed platform.
Every panel apart from the front doors has been changed.
It is 85mm longer than Ceed with increased front and rear overhangs, 26mm wider and 48mm higher. It also has 184mm ground clearance to complete the SUV look.
Engines range from one- to 1.6-litre petrol plus 1.4- and 1.6-litre diesels.
Suspension has been significantly reworked, notably with hydraulic rebound stops which provide a very smooth ride on bumpy or potholed roads without compromising agility.
There have been some technology upgrades in the cabin with a new 10.25-inch TFT LCD widescreen system featuring a new UVO Connect telematics system.
It is standard on 3 and First Edition grades and new functions include split-screen mode, home screen customisation, Bluetooth multi-connection and user profiles.
Information available includes live traffic, weather and parking availability.
The system can also be accessed via a UVO smartphone app providing remote access to a range of vehicle functions.
These include an at a glance overview of key elements of the car, including doors and locks.
The last known location of the car can be viewed along with a monthly summary of the car's usage.
Diagnosis alerts are shared with the smartphone user, giving information on the current status of the car with notifications automatically sent whenever an event is detected.
The Xceed is offered in Kia's usual easy to understand range of of 2, 3 and First Edition trim levels.
Equipment is comprehensive on the entry models which include Android Auto and Apple CarPay compatibility, reversing camera, keyless entry, lane keep assist and forward collision avoidance assist.
