Kia Motors, 6 Consecutive Months of Sales Growth in China

24,540 Units in October... 16.8% Increase YoY
Sportage 'Leads' K5 and Seltos 'Push'

The Chinese strategic model Sportage launched in 2018 (Photo by Kia Motors)

[Asia Economy Reporter Kim Ji-hee] Kia Motors has overcome the COVID-19 crisis in China and achieved monthly sales exceeding last year's figures for six consecutive months.

According to Hyundai Motor Group on the 16th, Kia's local joint venture Dongfeng Yueda Kia recorded sales of 24,540 units in China last October, a 16.8% increase compared to the same period last year. Sales, which had been struggling due to the COVID-19 outbreak earlier this year, turned to an upward trend compared to the previous year starting from May (around 23,500 units), and this trend has continued for half a year. Thanks to the popularity of the compact SUV ZPao (Sportage) and others, last month's sales marked the highest level in 19 months since March of last year.

Dongfeng Yueda Kia experienced difficulties last year, including restructuring and long-term leasing of the Yancheng Plant 1. Therefore, some analysts believe that the recent upward trend is partly due to the base effect from last year. However, the steady popularity of the ZPao, along with new models released this year such as the K5 and Seltos, have contributed to the successful rebound.

In the context of Beijing Hyundai's continued sluggishness, Dongfeng Yueda Kia's strong performance is significant. Last month, Beijing Hyundai sold only 42,096 units, down 31.2% compared to the same period last year. Considering that overall automobile demand in China increased by 8.2% during the same period, Beijing Hyundai appears to be struggling to find a breakthrough for recovery. Thanks to Dongfeng Yueda Kia's rising momentum, the overall sales decline rate of Hyundai-Kia Motors is gradually decreasing to 18.9%.

Hyundai Motor Group is accelerating sales recovery by participating in the China International Import Expo recently, showcasing models such as the Palisade and the new Carnival. A Hyundai Motor Group official said, “We are currently focusing our capabilities on improving the structure of our China business,” adding, “Interest is increasing with the launch of new models such as the new Sonata, K5, and Avante, and with improvements in dealer sales soundness, the sales momentum is expected to continue recovering.”

This content was produced with the assistance of AI translation services.