Kia 2010 Annual Report Download - page 9

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Kia Motors raised its domestic market
share to 30% in 2010, making this the
company’s best-ever year in last 15
years. The key factor was our ability
to offer a full line-up of exquisitely-
designed, quality vehicles in all sizes:
the K-series sedans, R-series SUVs,
Forte in the semi-mid category,
and Soul and Morning in small-size
category.
Domestic
Business
Performance
2010 marked a return to health for Korea’s auto market, as overall economic
conditions supported large increases in production, sales and new
model launches. Backed by rebounding market demand along with our
competitiveness in design and quality, Kia posted sales of 483,000 units for
an increase of 17.4% over the previous year when the government granted tax
benefits for the scrappage of old vehicles.
From Kia Motors’ perspective, 2010’s performance was the clear result of the
popularity of our new cars. Throughout the year we carried out one successful
launch after another. The K5 (known as ‘Optima’ in overseas markets), K7
(known as ‘Cadenza’ in overseas markets), Sportage R and Sorento R all made
strong entrances to the domestic sedan and SUV markets, particularly the K5
(62,000 units sold) and the K7 (42,000 units sold). These figures give the K5 the
highest market share in the mid-size sedan category. Meanwhile, the Sorento
R logged sales of 42,000 units, followed by the Sportage R with 40,000 units,
making 2010 a very satisfactory year indeed for Kia.
Morning (Known as ‘Picanto’ in overseas markets) continued to be a star
performer, commanding a 63% share of the domestic super-mini sector with
sales of more than 100,000 units, ranking it as the 2nd best-selling car in
Korea. The iconic Soul, which in 2009 brought home the Korean auto industry’s
first Red Dot design award, recorded sales of 21,000 units in 2010. Another
Kia celebrity with the distinctive family look is the Forte (known as ‘Cerato’
in some overseas markets), which features five variants including a sedan,
coupe and hatchback as well as hybrid and LPi versions to meet every possible
customer need.
New Models,
New Ways to Grow
Dozens of new cars will be launched on the Korean market in 2011, setting off
a fresh wave of competition among the nation’s major automakers. An even
more accelerated rate of change is expected for the near future, as free trade
agreements with the US and EU are likely to be ratified, leading to a rapid
increase in market share by imported vehicles.
Kia, however, is confident of maintaining its position during this paradigm shift.
We have a proven talent for finding opportunities where others see obstacles;
our products have met consumers’ demands for quality, and our design
capabilities are the envy of our competitors. The Morning, with three straight
years at the top of the super-mini car sector, has every reason to anticipate
remaining in the number 1 position, while new model launches of the K-series
sedans, R-series SUVs and the Pride (known as ‘Rio’ in overseas markets) are
expected to generate lasting momentum for Kia’s sustainable growth.
Prepared for the Future
Domestic Sales
(Unit: Thousand units)
Domestic Market Share
(Unit: %)
483
315
27.3
29.5
33.0
2007
411
2008 2009
18 COMPONENTS OF SUSTAINABLE GROWTH 19
KIA MOTORS ANNUAL REPORT 2010
(Excluding imported cars)