MENU
SEARCH
SEOUL—Kia Motors Corp. said Friday it expects sales growth to decelerate this year due to tougher competition overseas and weak domestic sales after it posted a 3.5 percent decline in fourth-quarter net profit.
The South Korea auto maker, in which Hyundai Motor Co. owns a nearly 40 percent stake, expects overall sales for 2012 to grow 9.5 percent to 2.71 million units, slowing from a 19 percent rise to 2.48 million units last year, reported The Wall Street Journal.
In overseas markets, where Kia sells eight out of 10 cars, Kia expects stiffer competition from rivals General Motors Co., Toyota Motor Corp. and Honda Motor Co., a company official said.
On the home front, demand is likely to remain weak, with more local customers increasingly showing a preference for imported cars due to lower prices, the official added. Kia continues to face headwinds in the domestic market, as sales are forecast to increase at a sluggish 1.7 percent pace to 500,000 units this year. In the fourth quarter, Kia said sales in South Korea fell 5.5 percent to 125,120 units.
Despite the lower sales forecast, Kia has set bold targets for its key U.S. and European markets, where Kia has increased its market share in recent years. Kia is aiming for 10 percent growth in sales to 534,000 units in the U.S. and a 23 percent increase to 356,000 units in European markets.
Kia reported consolidated net profit for the three months ended Dec. 31 fell 3.5 percent to 790.35 billion won ($702 million). Operating profit rose 17 percent to 825.79 billion won during the quarter, while sales were up 8.7 percent to 10.963 trillion won.
For 2011, net profit rose 30 percent to 3.519 trillion won while sales gained 21 percent to 43.191 trillion won.
At a conference call, Chief Financial Officer Lee Jae-rok said Kia plans to launch the K9 large-size sedan in the domestic market in the second quarter, adding the model will help raise the company's average selling prices. The company is targeting to sell over 2,000 units of the flagship sedan per month, Mr. Lee said.
For 2011, the average selling price for exported vehicles increased 11 percent to $13,100 per unit, while that for domestic vehicles inched up 1.8 percent to 18.6 million won.
Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.
Read More →
Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.
Read More →
Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.
Read More →
Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.
Read More →
Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.
Read More →
CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.
Read More →
JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.
Read More →
Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.
Read More →