Kia 2015 Annual Report Download - page 21

UNPRECEDENTED ACCOMPLISHMENTS,
NEW RECORDS
Despite a stagnant domestic market and aggressive
imports by overseas car brands in 2015, Kia Motors sold
526,600 vehicles in Korea for an increase of 13.4%
over the previous year. This was the first time our
annual domestic sales exceeded 500,000 units, and was
the result of steady sales of RVs, such as the Carnival
(Grand Carnival/Sedona) and Sorento, and the release
of new vehicles, including Sportage and K5 (Optima).
In addition, established models such as the K3 (Cerato),
Pride (Rio), and Sorento continued to be popular. We
also benefited from a reduction in consumption tax, and
we undertook a wide range of marketing activities to
maximize the effects of that reduction.
Breaking down our sales performance, sedan sales fell
4.8% year-on-year to 251,097 units, but demand for
SUVs and minivans rose due to the spread of an outdoor
leisure culture in Korea, and as a result, RV sales reached
210,418 units, up 47.6% over the previous year.
The all-new Sportage was immediately popular upon
its release in September, leading to total 2015 Sportage
sales in Korea of 52,641 units. The Sorento also
remained popular, recording its best ever annual sales
of 77,738 units. The K5 (Optima) sold 57,927 units,
thanks to the release of the new generation model. The
all-new Carnival (Grand Carnival/Sedona) enjoyed sales
of 67,503 units, a year-on-year increase of more than
50%. As the combined result of all of these successes,
Kia Motors’ domestic market share rose 0.7%p in 2015
to 28.7%.
CHALLENGING ENVIRONMENT,
DISTINCTIVE GROWTH STRATEGIES
In 2016, we expect fiercer competition among car
manufacturers, and the consumption tax reduction will
come to an end. Despite these challenges, the future of
Kia Motors remains positive, and we will achieve continued
growth by releasing new cars, strengthening customer
service, and executing impactful marketing initiatives.
We launched the all-new K7 (Cadenza), the first
complete update of our mid- to large-size luxury sedan
since the first-generation was introduced in 2009. This
was followed by the release of other models, including
the refreshed Mohave full-size SUV and the Morning
(Picanto) city car. We will also expand market dominance
of the K3 (Cerato) thanks to the high efficiency of
the recently released facelift model and diesel version.
Meanwhile, sales of the all-new Sportage, which was
released in September 2015, have been strong and are
expected to contribute considerably to our domestic
business performance in 2016.
In addition, we will expand our presence in the eco-
friendly vehicle market, led by the Niro, our very first
dedicated eco-friendly model and the first hybrid SUV
in Korea. We plan to release Niro with two powertrain
variants – a hybrid electric vehicle (HEV) in 2016
followed by a plug-in hybrid electric vehicle (PHEV)
in 2017. By leveraging the competitive edge of the
Niro’s distinctive design and high practicality, we will
succeed in both the eco-friendly vehicle market, which is
becoming more and more important around the world,
and in the small SUV market, which is growing rapidly in
Korea. The K5 (Optima) PHEV, our first PHEV model, will
be released in May 2016, and we will further expand
our eco-friendly car line-up to include the K7 HEV and
other vehicles, as our positive response to the changing
market environment continues.
In addition, we will actively use our smart customer
response system, and expand it to include smart sales
services, so that we can further improve customer
management and satisfaction. These strategies will work
in combination with the development of innovative
cars that provide great value, and will be supported by
marketing activities that reflect customer perspectives.
In this way, Kia Motors will become the car brand that is
most recognized and appreciated by customers.
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ANNUAL REPORT 2015 |