Kia 2004 Annual Report Download - page 46

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US exports also continued to be on a roll, mainly boosted by rising sales of larger models such as the Sorento, Carnival (Sedona) and Opirus. Sales were up 31.4%, or
around 72,000 units from the previous year, ranking the company second on in sales grow th, behind Nissan out of the makers having over 200,000 units sold.
However, the US share of the Company's total exports declined from 43% to 40%, as sales in other markets, especially Europe, rose up
The Company launched the Morning (Picanto) in Europe in April 2004, and record sales growth was achieved as soon as the new model was launched, while sales
of the Sorento and Cerato remained robust. As a result, the Company exported 264,412 units to Europe in 2004, a 68.8% increase year on year, and 218,906 units
were sold locally, a 48.7% gain from the previous year. The retail sales growth remained at the top in 2004 again. More importantly, the share of European exports in
the Company's total export portfolio rose from 29% in 2003 to 35% in 2004.
In other markets, which include Australia and Russia, sales were up for all models, and overall sales increased 27.5% against the previous year, contributing to the
higher boosting export num bers.
2004 Retail Sales Results in Major Markets
US Market
Although US demand stalled and the "Big Three" automakers offered extravagant incentives, the Company posted a 13.7% sales increase against the previous year,
second to Nissan, which operates local manufacturing facilities in the US. The Company's market share rose 0.2% point to 1.6%, and the Sorento, Sedona (Carnival)
and Optima continued to post blistering sales.
The power of the Kia brand continues to strengthen. In early 2004, the New Spectra (Cerato) made a successful market debut, and the Amanti (Opirus), the
Com pany's flagship premium sedan, has joined the ranks of the world-class autom obiles.
Furthermore, the Com pany's main strategic export model, the Sportage, went on the market in January, 2005. From mid-year, the JB (Rio/Pride), VQ, and MG will be
added to the lineup and are expected to accelerate the Com pany's expanding presence in North America.
European Market
Thanks to strengthened sales networks and models catering to local consum er tastes, the Company sold 218,906 vehicles in Europe during 2004. That figure is
48.7% higher than in 2003, when sales growth jum ped 41.9%. The Company's share of the European market has now surpassed a 1% mark for the first time.
Evidenced highest growth rate of all automaker in Europe for the past two years, the Company's market expansion efforts are showing tangible results.
46
KIA Motors_2004 Annual Report
Management’s Discussion & Analysis
• US Market M/S • US Market Retail Sales
Volume (Units)
* Source: Autom otive News * Source: Company data
2002
1.4%
2003
1.4%
2004
1.6%
2002
237,345
2003
237,471
2004
270,056
• European Market M/S • European Market Retail Sales
Volume (Units)
* Source: ACEA (European Autom obile Manufacturers Association) * Source: Company data
2002
103,699
2003
147,173
2004
218,906