Kia 2014 Annual Report Download - page 13

Domestic Business Performance
In 2014, Kia Motors sold a total of 464,600 vehicles in the
domestic market, up 1.5% from the previous year. Backed by
steady sales performance of the K-series (K5/K7/K9), all-new
Carnival, Sorento, and Morning – the latter of which remained as
the unrivaled best-selling compact car in South Korea –
we retained our leading position in the domestic car industry.
The outlook for the domestic car market is positive for 2015.
Although its growth may slow in comparison to 2014, it will likely
maintain a modest level of recovery. Overall sales are expected to
increase, with domestic sales positively inuenced by minor cuts
in the individual consumption tax for vehicles with displacement
of 2000cc or higher. The competition from imports will likely still
be signicant. Kia Motors will therefore continue to enhance
its competiveness through preemptive strategies and proactive
marketing initiatives.
Kia Motors will continue to attract domestic customers by launching
new and innovative models. The next generation K5 will have
strengthened stability, and the next generation Sportage R will
feature additional high-tech functions, including the rst pedestrian
safety device in SUVs. Our impressive new vehicles will highlight the
quality of our entire model lineup.
Kia Motors is determined to maintain and improve its domestic
market share. To do so, we will respond to the needs of consumers
and establish ourselves as the preferred automotive brand through
the development of innovative cars that improve our customers’
lives. By welcoming change and overcoming challenges, we will
continue to be a leader in the industry despite a sluggish domestic
market.
The all-new Carnival enjoyed huge
popularity, selling 32,334 units in its rst
seven months following introduction due
to an increase in outdoor activities and
the spread of camping culture in Korea.
In 2014, the domestic car market was more competitive than ever
due to the introduction of a large number of price-competitive
import brands along with a weak yen. Despite these challenges, Kia
Motors did very well, with sales breaking through the 3 million–unit
mark for the rst time in company history.
Particularly, we defended our domestic market share by launching
all-new versions of the Carnival and Sorento, and carrying out
strategic promotional and marketing activities. Our mainstay
models, including Morning, K3, K5, and Sportage R, also gained in
popularity.
The Morning model maintained its reputation as a leading compact
car in the domestic market, selling 96,133 units and ranking rst
in compact car sales for the seventh consecutive year. The K-series
was also appreciated by domestic customers, with 49,116 units of
K3, 48,575 units of K5, and 21,989 units of K7 sold in 2014. The
Sportage R also became a bestselling compact SUV model, with
47,652 units delivered for a rise of 4.8% over the previous year.
Meanwhile, the all-new Carnival model was an incredible hit,
selling 32,334 units in its rst seven months in showrooms and
outperforming the sales of its predecessor model. This performance
was due largely to an increase in outdoor activities in line with the
spread of camping culture in Korea. The Sorento also did very well
in the SUV market, posting sales of 24,315 units in its rst four
months following introduction. As a result, Kia garnered 28% of
the domestic new vehicle market in 2014.
Strong sales results amidst intensifying
competition
Selected as the most favored brand by
customers
Domestic Sales & Market Share
(Unit: thousand vehicles)
481 (31.2%)
2012
458 (29.8%)
2013
465(28.0%)
2014
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Annual Report 2014Our Performance