Kia Motors (UK) is counting on an expanded model line to boost sales 50% to 18,000 cars this year, writes just-auto.com deputy editor Graeme Roberts.
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Perhaps anxious to dispel cynics who might suggest that a car company ranked 28th in the 2002 car sales league table with 12,351 units and a piffling 0.48% share of the UK market is dreaming, PR chief Paul Carter adds a rider or two to the claim.
“We’ve been a factory shop [wholly-owned subsidiary of Kia in Korea after the franchise was yanked from a privately-owned UK company] since August but we might have sold 14,000-15,000 at the running rate post-changeover,” he said.
Once can admire the modesty and caution but it’s a safe bet that, if Kia does hit its UK goal, this time next year we’ll be reading a press release with a “fifth record year, 50% sales boost” headline.
Carter expects the increased volume to come mainly from additional models but also a modest boost in dealer numbers from around 100 now to 130 by year’s end.
The company has just updated its entry-level Rio range, which, at the bottom end, gives buyers a Ford Focus-size family hatchback for a Ka city car price, boosted the upper-medium sized Magentis line (Mondeo size) with a two-litre four cylinder alternative to the fuel-guzzling V6 and added a turbodiesel engine option to the Carens, a small minivan that targets the likes of Renault’s Megane.
Kia is also eagerly awaiting the new Sorento SUV which will be offered with a petrol V6 automatic but is expected to mostly be sold in manual or automatic turbodiesel form.
Saying that the new SUV gives Kia a crack at the Mercedes M-class-sized market, for thousands of pounds less, Carter noted that LHD European markets boosted sales 30% in the final quarter of 2002, as all the new models came on stream. Europe as a whole is budgeting for a 20% increase this year, he added.
Kia is, of course, now part of the Hyundai empire and that company’s UK distributor recently launched a five-year warranty. So will Kia follow suit?
Carter says it’s under consideration and “we might go that way but we have to be careful”. He reckons the current three-year unlimited mileage warranty with roadside breakdown assistance even in Europe is pretty good as it stands and “not every customer would get value out of” a five-year warranty.
“Warranty does cost, but you can’t put it on the sticker price,” Carter said, adding: “there are other ways of putting value into a car”.
A long warranty could also suggest to potential customers the company was making up for a bad quality reputation, he added.
