Kia 2000 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2000 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 18

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18

Including last year, Kia has realized continuous sales
growth through improved competitiveness
of our passenger line and great response
to our RV models.
◀◀◀ Rio snow festival
◀◀ Optima unveiling at the Keumgang Mts.
◀Unveiling of Koreas minivan - the Carnival II
Race for the top -
the Spectra W ing Road Show
2000 KIA MO TO RS
AN N UAL REPORT / 11-12
Domestic business activities
Last year, Kia sold 1.43 million vehicles owing in part to recovered
domestic demand and rapid growth of the RV market. This figure
represents a 15% increase over 1999. By vehicle type, the num-
bers were 435,000 RVs, or a 61.3% year-on-year increase, and
625,000 passenger cars, for a 2.5% decrease. Meanwhile,
370,000 commercial vehicles were sold, generating a 2.9%
increase over the previous year.
Given the market conditions, Kia focused on strengthening its
leadership in the RV market and regaining its position in the pas-
senger car market. These efforts resulted in sales of 410,300 vehi-
cles for a 36% increase, as well as a firm hold on the No.2 ranking
in domestic market share.
Since 1999 and despite recent weakening of the passenger car
market, Kia introduced the new Rio, Spectra and Optima models.
These products helped to account for a 40% year-on-year sales
increase or a total of 123,000 vehicles. In the RV market, improve-
ments in the Carnival, Carens and Car Star enabled Kia to sell
181,000 vehicles (a 17% increase) and establish competitive
dominance.
This sales increase was accompanied by other excellent results
on the qualitative side. Non-profitable models were terminated,
better price levels were established, sales conditions were
improved and debt was lowered.
Forecasts for 2001 indicate sales of 1.35 million vehicles, a 6%
decrease from 2000, brought on by reduced real purchasing
power from an overall economic slowdown in Korea. Likewise,
competition among producers will become even more heated.
Kia will respond to the worsening market environment with a
three-pronged approach. Specifically, this means that we will
focus marketing capabilities on our most competitive models, rein-
force our sales organization and expand sales activities. This
includes optimum utilization of online and offline sales approaches.
Through all available means, Kia will match last years 410,000
units and secure a 30% domestic market share.