April 25, 2024

• 

[THE INVESTOR] Kia Motors' sales have dropped significantly in the first two months this year, industry data showed on March 21.

Sales of Dongfeng Yueda Kia, Kia Motors’ Chinese joint venture, dropped 24.1 percent on-year to 31,146 units in February, according to data by the China Association of Automobile Manufacturers. During the same period, sales by Chinese automakers increased by 22.8 percent. 

Kia's China-only KX7 SUV

In January, Kia’s sales dropped 38.9 percent on-year to 30,080 units in the country.

According to industry watchers, the decline could be partly attributed to Chinese customers who appear to be hesitant about Korean products on account of a Beijing's anger over Seoul's decision to deploy THAAD. Beijing believes the missile defense system may hurts its security interest in the region. 
The sales slump also follows some Chinese dealers demanding compensation from Kia in January for the losses brought about by unsold cars in stock. 

In 2016, Kia’s auto sales in China grew 4.4 percent. The figure lagged China's overall auto sales that jumped 15.5 percent on-year.

Meanwhile, Kia launched KX7 SUV, China-only midsized SUV based on the third-generation Kia Sorento, in the country last week, with ambitious plans to revive sales in the world’s largest auto market.

By Ahn Sung-mi (sahn@heraldcorp.com)