Kia Motors, the South Korean automaker affiliated with Hyundai Motor, announced it would introduce additional sport utility vehicle models and lift discounts in China in a bid to spur demand in the brand’s largest single market.
According to comments from Chief Financial Officer Han Chun Soo made after an earnings conference call on Friday, the automaker would introduce two new SUV models in China, the world’s largest single auto market, by 2017 as a way of doubling the offer in the booming vehicle sector. He added the Seoul-based carmaker would also work to secure new dealerships in order to lift sales in western China. The measures are part of a turnaround plan reported after the automaker announced its profit plunged 27 percent because of declining China sales. Hyundai, owner of 34 percent of Kia, announced similar plans to lift sagging demand in the country. Global brands have been spiraling down across the market lately, with the auto sector in China ready for the slowest growth rate in four years because of lagging economic surge and more cities imposing limits on new vehicle registrations in order to curb pollution and traffic.
Hyundai and Kia’s Chairman Chung Mong Koo commented earlier this month the potential Grexit (Greece exiting the European common currency), sliding interest rates in the United States, the stagnant economic growth in China (the worst advance in more than two decades) can be quoted as issues throughout the entire year. He added that even emerging economies would be impacted, as the yen and euro becoming even weaker against the dollar.