[Q&A] Song Ho-sung: "Flexible Production to Meet Changing Hybrid Demand"

"Gasoline Seltos Expected to Outsell Hybrids"
Advanced Features Added... "Reasonable Pricing to Be Set"

On December 10, Kia President Ho-sung Song commented on the world premiere of 'The All New Seltos' (hereafter referred to as Seltos), stating, "We have sufficient production capacity for hybrid models, so we will be able to respond flexibly to future market changes."

At an online media conference held the previous day, President Song said, "Demand for hybrids varies by region, and for Seltos, the sales ratio of gasoline models is expected to be higher than that of hybrids, at roughly 65 to 35."

Kia unveiled the 'The All New Seltos' for the first time in the world through a world premiere video on the 10th. Kia President Ho-sung Song is making the announcement. Kia

The following is a Q&A with President Song.

- What are the key differences in the second-generation Seltos model?

▲We sold about 2 million units of the first generation globally, averaging around 400,000 units annually over five to six years. When planning the second generation, we conducted market research and found that there were demands for more interior space and greater powertrain diversity. For the second generation, we extended the wheelbase and overall length to increase both cabin and trunk space, and we added a hybrid option to better address fuel efficiency requirements.

- How do you anticipate the sales ratio between gasoline and hybrid models?

▲India, where Seltos will be launched first, has almost no demand for hybrids. Therefore, sales there will focus mainly on gasoline models. In Europe, demand for hybrids is high, so the hybrid ratio is expected to be higher. In the United States, gasoline models still account for a larger share than hybrids. While the hybrid trend is growing in the domestic market, considering consumer purchasing power, gasoline models are still expected to outsell hybrids. In particular, the Middle East, Central and South America, and Asia-Pacific regions have overwhelmingly high demand for gasoline vehicles, so the overall ratio is projected to be about 65 to 35.

- You have set an annual sales target of 430,000 units. What are your sales targets and specialized marketing strategies for each major market?

▲Out of the 430,000 units, we are targeting 130,000 units in North America, with about 100,000 in the United States and 30,000 in Canada, Mexico, and other North American markets. In India, we plan to sell around 100,000 units. In the domestic market, our target is 54,000 units, but we expect to exceed this. For Europe, where Seltos is being introduced for the first time, we are planning for 62,000 units, and we anticipate about 30,000 units each in Central and South America, the Middle East, and the Asia-Pacific region.

- Are there any plans to launch an electric vehicle version of Seltos?

▲There are no plans to launch an electric vehicle version. Our electric vehicle lineup already includes models that cover the small SUV segment, so there is no need to add an EV derivative of Seltos.

Kia unveiled 'The All New Seltos' for the first time in the world through a world premiere video on the 10th. From left to right: Changseung Ryu, Executive Vice President of Kia Customer Experience Division; Hoseong Song, President of Kia; Karim Habib, Vice President of Kia Global Design; Hajun Seo, Executive Director of Kia Domestic Product Division. Kia

- What significance does the Seltos hybrid model have in Kia's electrification strategy and achieving carbon neutrality?

▲Previously, Seltos was only available as an internal combustion engine model, so by adding a hybrid version, we can achieve carbon reduction effects. This aligns with our overall electrification transition plan.

- With the addition of the hybrid model, there is now overlap in product positioning with other models. How will this be addressed?

▲With the launch of the EV3, any overlap with the Niro EV will be addressed by focusing on the EV3, which offers superior driving range and performance. The Niro will focus on the hybrid model rather than the EV. The Niro Hybrid is a vehicle developed with fuel efficiency in mind, and there is still strong global demand for this. The Seltos Hybrid is aimed at customers who want a traditional SUV but also desire a fuel-efficient option, providing them with more choices. For customers who prioritize fuel efficiency, the Niro Hybrid will be more appealing, while those looking for a small SUV will prefer the Seltos Hybrid. The target customer base for the two models is different.

- What is the expected production ratio for hybrid models?

▲Even if the proportion of demand changes in the future, we have sufficient production capacity for hybrid models, so we can respond flexibly to market changes. We will do our best to adjust supply to prevent any delays for customers, even if demand fluctuates.

- With the increase in size and the addition of various features, a price increase is expected.

▲(Hajun Seo, Executive Director of Domestic Product Division) Due to the increased specifications and the application of advanced features, some price increases are inevitable. We are reviewing pricing to ensure it remains reasonable, taking into account the positioning among competing models and within our own RV lineup.

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