Kia 2015 Annual Report Download - page 23

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TANGIBLE PROGRESS IN
GLOBAL MANAGEMENT
The year 2015 was marked by both opportunities and
challenges in the global automotive market. While
the U.S. and Europe saw positive growth as a result of
economic improvements, in contrast, most emerging
markets, including China, saw slowing growth and
difficult market conditions. The overall balance was
somewhat negative.
Against this backdrop, Kia Motors’ overseas sales
in 2015 totaled 2,523,000 units, including 1,198,000
units manufactured in Korea and 1,325,000 units made
overseas. This was a year-on-year decrease of 2.1%,
but still a significant achievement when considering the
challenging market conditions and intense competition.
While sales volume fell, Kia Motors achieved a 5.1% year-
on-year increase in revenues to KRW 49,521.4 billion
thanks to increased sales of high value-added models, the
release of new vehicles, and strong sales of RVs.
The Sportage, including both new and previous models,
led our performance with 370,193 units sold, followed
by the Rio (Pride) with 466,000 units, and the Cerato
(K3/Forte) with 358,000 units. Sales of the Optima (K5),
which is also manufactured locally in the U.S., reached
110,000 units to reinforce its position as a steady
seller. The Venga, a strategic model for the European
market, saw a year-on-year increase in sales of 8.3%,
once again proving the strengths of our localized global
management strategy.
Meanwhile, RV sales enjoyed remarkable growth in
the U.S., where our large-size models sold well, helped
by low oil prices and an economic recovery. Sales
growth was led by the Sorento, Sedona (Carnival),
and Sportage, with increases of 13.4%, 152.3%, and
25.1%, respectively, over the previous year. As a result,
total U.S. sales reached 626,000 units, up 7.9% over
2014, and our market share also rose slightly to 3.6%.
In Europe, we sold 385,000 units, up 8.8% over the
previous year, thanks to the new Sorento and strong
sales of the Sportage. In contrast, sales in China were
down 4.6% to 616,000 units as a result of the Chinese
economic slowdown and fierce price competition from
local companies. There was, however, a rebound in the
fourth quarter, and our Chinese plant operation ratio
reached 116.6%. 2016 should see increased sales in
China thanks to the launch of the new Sportage as well
as a reduced purchase tax for vehicles with an engine
capacity of 1.6 liters or less.
21
ANNUAL REPORT 2015 |