Kia 2007 Annual Report Download - page 50

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050_
Kia Motors Annual Report 2007
・Market Share per Company & Segment (Doestic, 2007)
Overseas Sales
Kia Motors exported a total of 842,642 units (exports from Korea plant, CKD excluded) by strengthening the network of dealers and aggressive local marketing
activities under the difficult market conditions in 2007 such as high oil prices, strong Korean Won and subprime crisis in the U.S.. In particular, as part of efforts to step
up our sales forces, Kia has continuously developed dealer network by inducing excellent dealers or replacing dealers who have poor performance. In order to
enhance its brand reputation, Kia attended major motor shows held in Geneva (on March) and Frankfurt (on September). Kia also has been active in various
marketing activities such as sponsorship for Davis Cup and EURO 2008.
In the North American market, market demand has decreased by 3% year-on-year due to the contracted consumer sentiment caused by the turbulence in housing
market. Sales of small-sized passenger cars and RVs were strong while sales of Vans and Pickups declined. Kia exported a total of 395,498 units, an 8.0% increase from
the previous year by expanding sales through strengthened lease program and install payment plan and promoting flexible car sales by regions and vehicle types
considering market condition. Kia also focused on fortifying dealer network qualitatively by developing dealers in big cities to establish sales foundation for
successful operation of US plant scheduled to start production in 2009.
Retail sales in the U.S. posted 305,473 units, an increase of 3.8% up from last year’s 294,302 units. Kia’s market share has increased by 0.1%p to 1.9% over 2007. As the
demand for small compact cars with high fuel efficiency has risen in the wake of high oil prices, the sales of Rio and Sportage has been outstanding. Rondo(Carens)
that was released for the first time in the U.S. market has contributed to sales increase, recording 26,020 units.
・US Sales
The Western European market is facing difficulties including intensified competition in sales promotion due to sagging demand in major markets such as Germany
and Britain and the release of new cars by rival automakers. In this situation, Kia exported a total of 139,544 units by forming strong dealer network and proactive
local marketing and promotion activities. (The exports reach 262,938 units, a 5.9% increase year-on-year, if exports from the Slovakia plant are included)
Retail Sales in Western Europe have decreased by 4.0% from 271,261 units of last year to 260,379 units. Market share in the region fell by 0.1%p to 1.6%. cee’d
manufactured at the Slovakia plant gained positive response from the market but RV sales was sluggish due to strengthened regulations on large RVs and new cars
released by rival companies.
Management’s Discussion & Analysis
Sales M/S Sales M/S Sales M/S
CommercialPCs RVs Particulars
Kia 122,878 16.4% 95,479 33.9% 45,107 19.4%
Hyundai 356,869 47.7% 102,705 36.4% 159,237 68.4%
GM-Daewoo 94,740 12.7% 30,533 10.8% 14,064 6.0%
Ssangyong 9,346 1.2% 49,882 17.7% 1 0.0%
Renault-Samsung 116,203 15.5% 782 0.3% 5 0.0%
Others 47,988 6.4% 2,680 1.0% 14,240 6.1% Imports, etc.
Total 748,024 100.0% 282,061 100.0% 232,654 100.0%
(Units, %)
* Based on KAMA new registrations data; there may be slight differences with the company’s data
* Source: Autodata, Company data
294,302
1.8%
2006
275,851
1.6%
2005 2007
305,473
1.9%
Retail Sales
M/S
(Units, %)