Kia 2004 Annual Report Download - page 45

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Management’s Discussion & Analysis
Sales Result
2004 Sales Result
Kia Motors (the Company) sold 250,643 built-up vehicles in Korea in 2004, down 22% from the previous year. However, exports went up 41% to 760,786 units, for
1,011,429 total built-up units sold, 18% higher than in 2003.
The Korean automobile industry suffered from sluggish domestic demand. Car sales declined as much as 17% from 1.32 million in 2003 to 1.09 million in 2004, the
low est level since 1990. Due to the dramatic sales drop such as dow n 39% for the minivan and down 30% for the light commercial vehicle, etc against 2003, the
Com pany's domestic market share also fell 0.8% points from the previous year to 23%.
However, boosted by the February launch of the Morning (Picanto), the passenger car share of the Com pany's domestic sales, which had declined for several years,
rebounded to 33%. On top of that, the Sportage com pact SUV came on the market with great popularity in August, reversing the declining sales of RVs (a category
that includes SUVs, Mini-Vans and MPVs in Korea) caused by a new tax regime, higher diesel prices and changing governm ent policy towards autom obiles.
Despite the poor domestic sales, exports reached 760,786 units, or 41% higher than in 2003, making up for the poor dom estic perform ance. The growth was seen
globally, as sales were up 31% in the US, 69% higher in Europe, and 28% greater in the other foreign markets combined. In particular, European sales amounted to
264,412 units, representing 35% of total exports, up from 29% in 2003. Now Europe has nearly the same weight as the US in terms of exports for the Company.
45
KIA Motors_2004 Annual Report
1,011,429
250,643
760,786
15,257,742
4,241,228
11,016,514
12,421,361
81.4%
2004 2003 2002
858,697
319,795
538,902
12,839,881
5,126,358
7,713,523
10,084,078
78.5%
894,268
444,444
449,824
12,158,113
6,304,394
5,853,719
9,581,392
78.8%
Sales (Units)
Domestic
Export
Sales (KRW in millions)
Domestic
Export
Cost of Sales (KRW in millions)
Cost of Sales Ratio
• Industrial Demand
(Thousand Units)
• Export Breakdown by
Region (Based on Number
of Shipment Units)
• Revenue
(KRW in Billions)
1,622
1,318
1,094
2002
26.5%
2003
23.8%
2004
23.0%
Dom estic Market M/ S
2002 2003 2004
12,158.1 12,839.9
15,257.7
6,304.4
5,853.7
5,126.4
7,713.5
4,241.2
11,016.5
Dom estic
Export
Asia/Pacific 8.7% North America
43.5%
Mid East/ Africa
7.8%
Latin America
5.3%
Europe
34.7%
2004
760,786 units
Asia/Pacific 8.7% North America
43.5%
Mid East/ Africa
7.8%
Latin America
5.3%
Europe
34.7%
2003
538,902 units
* Source: KAMA (Korea Autom obile Manufacturers Association)