SEOUL - Kia has no plans to build new plants and will focus instead on product quality, despite concerns its limited production capacity may slow sales growth, said the automaker's co-CEO, Lee Sam-ung.
"Quantitative growth is important, but qualitative growth is also important. We plan to focus on improving product quality and our brand," he said at a launch event for Kia's revamped Rio subcompact, according to Automotive News Europe.
"Global auto demand is expected to deteriorate, but we will launch new models, strengthen local promotions and enhance brand competitiveness to cope," Lee said on Wednesday.
Kia will "try its utmost" to achieve its 2011 sales target of 2.5 million vehicles despite a troubled global economy, Lee said, adding that it had not yet fixed next year's sales goal.
Kia and affiliate Hyundai Motors , are expected to continue to post strong sales this year despite the uncertain economic outlook, but their stretched production capacity has failed to keep up with demand.
A Hyundai executive told Reuters early this month that it also had no plans for new plants.
Lee denied media reports that Hyundai-Kia did not plan to produce pure electric vehicles and would focus on hybrid electric vehicles, saying the group plans to launch all-electric compact cars in 2014 and 2015, respectively.
Kia aims to sell 260,000 of its new Rio subcompact next year globally, up from 110,000 this year, to expand its presence in the small-car segment. The Rio was Kia's No.3 vehicle in terms of sales last year with global sales reaching 224,942 units.
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