Kia 2006 Annual Report Download - page 42

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KIA MOTORS 2006 Annual Report
2006 passenger car (PC) sales rose by 20.5% (19,700 units 󰥩, a market share of 16.8%), thanks in large part to the growth of the sub-compact segment, which
includes models such as Morning (‘Picanto’ in overseas markets) and Pride (‘Rio’ in overseas markets). PC sales were also helped by our large-sized model Opirus
(‘Amanti’ in some markets). In sum, Kia’s sub-compact PCs took 62.7% of market share in this segment. The completely revamped Opirus raced to the top of the
market, achieving top total annual sales in the large PC segment in 2006. Opirus has the domestic prestige of an imported car. We expect Opirus to enjoy further
strong sales growth within the domestic market.
Kia’s RV and commercial vehicle sales declined significantly. The stagnation of RV sales was due to the overall slowdown of the market and the launch of new SUVs
by competitors. Still, we expect that the fall-off in the RV sector will be temporary. New SUV sales by rivals were largely bolstered by promotional splashes; once
these subside, Kia RV models such as Carens (‘Rondo’ in some markets) and Carnival (‘Sedona’ in some markets) will nicely pick up again.
Amid fierce competition with domestic automakers in 2006, we introduced various sports marketing activities to secure domestic market share by holding a victory
longing event for the ‘2006 Germany World Cup’, as well as a golf clinic with the famous LPGA world star Michelle Wie. Kia also provided cars for super bowl
champion Hines Ward and the former national soccer team coach Guus Hiddink. Other non-sport related marketing activities included the ‘School Zone Campaign’
and ‘Easy Move Campaign’ - were efforts to provide convenient transportation for the disabled. Cultural marketing events included ‘The Busan International Film
Festival’ and ‘Korea-Russia Inter-Cultural Festival’.
Kia continues to achieve higher level of customer satisfaction in a variety of fields. These efforts have allowed us to take top KS-SQI(Korean Standards - Service
Quality Index) honors for 3 consecutive years, as well as other awards. All of us at Kia realize that we have an obligation to give back to our neighboring
communities, to repay customer loyalty with a range of community & charitable campaigns. One such way we’ve done so is our ‘Spare Change from Wages’
campaign.
Market Share per Company (Domestic)
Management’s Discussion & Analysis
Segment Domestic
Market KIA M/S
Domestic
Market change KIA
20062005
M/S change
PCs 633,859 95,875 15.1% 689,617 8.8 % 115,575 16.8 % 1.7 %
RVs 290,412 112,321 38.7 % 264,404 -9.0 % 97,489 36.9 % -1.8 %
Commercial 223,378 49,218 22.0 % 225,365 0.9 % 43,775 19.4 % -2.6 %
Total 1,147,649 257,414 22.4 % 1,179,386 2.8 % 256,839 21.8 % -0.6 %
(Unit)
* Based on KAMA new registrations data; there may be slight differences with our data
Sales M/S Sales M/S Sales M/S
20042006 2005 Particulars
Kia 256,839 21.8 257,414 22.4 252,460 22.4
Hyundai 569,441 48.3 554,282 48.3 549,321 48.6
GM-Daewoo 131,627 11.2 108,935 9.5 111,231 9.8
Ssangyong 56,551 4.8 74,529 6.5 101,181 9.0
Renault-Samsung 114,523 9.7 114,510 10.0 82,934 7.3
Others 50,405 4.3 37,979 3.3 32,133 2.9 Imports, etc.
Total 1,179,386 100.0 1,147,649 100.0 1,129,260 100.0
(Unit, %)
* Based on KAMA new registrations data; there may be slight differences with our data