Kia Motors Corp. will sell more than 3 million cars around the world this year for the first time in its history. Following the 1 million mark in 2004 and the 2 million mark in 2010, it will set a milestone that will definitely help the auto maker firmly establish itself as a global automotive brand.
In particular, looking at the current production and sales trends, Kia is expected to pass the 3 million mark on December 24, i.e. ‘Christmas Eve.’ Public attention is drawn to Kia.
According to industry insiders on December 14, Park Han-woo, CEO of Kia, attended a meeting of CEOs of the automotive industry, and said, “If the current trend continues, Kia`s global production and sales will exceed 3 million cars on December 24, Christmas Eve, for the first time in its history.” “It is a great honor to see its sales, which were merely 800,000 in early 2000`s, exceed 3 million cars,” he said. “Kia will work hard next year as well to contribute to the growth of the Korean automotive industry.”
Early last year Mr. Park Han-woo, appointed as CEO of Kia, spoke officially for the first time since his appointment. It is especially meaningful to Kia because he used the message of exceeding the 3 million milestone to express his ambition as the new CEO of Kia.
Kia`s global sales have rapidly increased since it was incorporated into the Hyundai Motor Group in 1999. After its sales exceeded 1 million cars in 2004 for the first time, the company saw its sales go over the 2 million mark in just 6 years. Then, it took Kia only 4 years to reach the 3 million milestone. 3 million cars correspond to No. 9 among global automotive brands (as of last year). Its sales, combined with those of HMC, are No. 5 in the world, but as a separate brand, Kia stands tall among the top 10 auto makers in the world.
Kia`s growth in sales is attributed to the brisk sales in the US and China, the two biggest auto markets in the world. Kia sold a total of 534,647 cars in the US market until last month, up 7% year on year. Considering that HMC`s sales increased by only 1% in the same period, it is an outstanding performance. Until October Kia sold 514,000 in China, up 16% year on year. It was very effective to use the local joint venture, Dongfeng Yueda Kia Motors Co,. to localize production and launch special models.
Thanks to this upswing in sales, Kia`s brand value is also increasing every day. In the `global top 100 brands of 2014` announced by Interbrand, Kia was ranked 74th, 9 steps up from last year. In particular, its brand value ($5,396 million) rose by a whopping 15%, more than double that average growth rate of top 100 brands (6.7%).
A Hyundai & Kia insider said, “The correct global sales for this year are not fixed yet, but looking at the recent sales trends, Kia is certain to pass the 3 million mark by the end of this year.”
Yang Jong-seok | jsyang@etnews.com