Despite concerns from analysts that Kia’s sales growth may be held back by a lack of capacity, the South Korean carmaker says it has no plans to build new plants either at home or abroad.
It said it would focus instead on product quality. Co-CEO Lee Sam-ung added: “Quantitative growth is important, but qualitative growth is also important. We plan to focus on improving product quality and our brand.
“Global auto demand is expected to deteriorate, but we will launch new models, strengthen local promotions and enhance brand competitiveness to cope.”
Lee also said the automaker still aimed to achieve its 2011 sales target of 2.5m vehicles despite a troubled global economy.
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Kia and affiliate Hyundai, are expected to continue to post strong sales this year despite the uncertain economic outlook, but production capacity has struggled to keep up with demand.
Hyundai told the Reuters news agency earlier this month that it also had no plans for new plants.
Speaking at the launch of the new Rio in South Korea, Lee said that Kia aims to sell 260,000 of the vehicles globally in 2012, up from 110,000 this year, and expand its presence in the small-car segment.
