Kia 2005 Annual Report Download - page 65

65
2005 Annual Report
The West European market also had its share of troubles. Dem and was dampened by slower than expected econom ic grow th in certain regions, and persistent
unem ployment rates in other regions. Yet despite these troubles sales to the region were strong. The new Optima model was well received at the Frankfurt Motor
Show , the new Rio model w as launched with great fanfare. Our track record in the Euro area w as outstanding last year. We reached solid double-digit growth in
several key European markets; 75% sales growth in France, 41% grow th in Italy, 31% in Germ any, 17% in the UK, and 17% in Spain. Exports to the Europe totaled
302,614 autom obiles, a sales hike of 37.2% com pared with 2004, in which 220,621 units w ere sold. This im pressive performance gave us the highest sales grow th
rate in Europe for the third year running. In 2004 our sales grow th was 54.9% and in 2003 it w as 47.8%. Europeans are expressing widespread acceptance and trust
of the KIA brand; more and m ore households in Europe now realize that Kia cars are at par with, or exceed, the global standard of our peers.
Prospects for East European market such as Russian and the Ukraine are looking up. These economies are benefiting from higher oil price and greater political
stability. Sales dem and is holding its ow n in Turkey, in spit of tighter fiscal policies aim ed at bringing down their accum ulated budget deficit. Turkish exports grew
steadily by 12.8%; 49,917 vehicles were exported in 2005 com pared with 44,251 units in 2004.
Vehicles sales in West and East Europe rose dramatically to 319,245, com pared w ith 219,346 in sales the previous year. This m arks a superb 45.5% spike in sales.
According to The Association des Constructeurs Europeens d'Autom obiles (ACEA), our market share in EU15 and EFTA countries has m ade considerable inroads
into Europe. In 2005 our European market share reached 1.6%. This is a steady clim b from a market share of 1.1% in 2004 and 0.8% in 2003.
Excluding the key regions of Europe and North America, 185,721 vehicles w ere exported. This is an increase of 12.9% over 2004, in which 164,570 units w ere sold.
More specifically, our Picanto, Frontier and Cerato m odels did well in Central & South Am erican market; exports to this area reached 42,229 vehicles, representing a
grow th rate of 5.6% over 2004. Sales w ere given a jum p start in the African & Middle East regions, as w e replaced underperforming distributors. This paved the w ay
for an increase of 11.5% in sales; 65,336 vehicles were exported to the African & Middle East regions during the previous year. The Asia-Pacific m arket saw a 13.0%
jum p in sales over 2004, with sales of 61,776 vehicles. Stronger Asia-Pacific sales were spurred by ongoing efforts to raise our brand im age within Australia through
sports m arketing activities and better A/ S activities that focus on im proved custom er point of contact m anagem ent. In the China m arket w hich includes China,
Taiwan, and Hong Kong, RV and com m ercial vehicle sales show ed favorable grow th, as sales reached 16,310 vehicles, a 44.0% rise over the previous year figures. In
sum m ary, sales to regions other than Europe and NA reached 188,197 units. We therefore registered a healthy 28.6% jum p in sales over the previous year’s figure of
146,311 car sales.
• European M/ S • European Market Retail
Sales Volume (Units)
* Source: ACEA * Source: Com pany data
2003
0.8%
2004
1.1%
2005
1.6%
2003
147,173
2004
219,346
2005
319,245
2005 2004 2003Category
Sales Status
(Units)
Business Results
(KRW in millions)
Dom estic
Exports
Total
Sales Revenue
Ordinary Profit
Net Profit
265,825
840,016
1,105,841
15,999,356
689,405
680,904
250,643
760,786
1,011,429
15,257,742
840,078
662,026
319,795
538,902
858,697
12,839,881
937,526
752,857
• Sales Status & Business Results
*CKD Excluded