Kia Motors’ Focus On Younger Consumers Result To Higher Revenue For Q3 At 13.1 Trillion Won
CEO of Kia Motors Park Han Woo has been churning out new strategies to boost the company's sluggish sales by developing models for consumers in their 20s to early 40s, generating surprising results in the company's Q3 report on Monday, reported Korea JoongAng Daily on Wednesday.
According to the company's report, it has reached a 15 percent increase year-on-year in revenue at 13.1 trillion won for the third quarter of 2015, with a 20 percent increase year-on-year in operating profit at 677.5 billion won.
The company has maintained high sales in October. Exactly 46,605 Kia Motors cars have been purchased in Korea, a 25.9 percent increase from 2014. On the other hand, 222,349 cars have been sold in the global market, a 14.2 increase year-on-year.
The company's aging vehicle models and lack of innovation have been believed to be the cause of the 22.8 percent drop in operating profit for the first half of 2015.
The 57-year-old CEO then pushed the sales of their Sportage SUV and K5 sedan models, and included features that would attract the younger consumers.
"The Sportage SUV is a symbol that reflects the company's innovation and progress," said Kia Motors Executive Vice President Jung Rag. "At a time when luxury imports led by German automakers are expanding their share in the market, providing competitive and affordable cars has been key for us."
PR Newswire also reported on Wednesday that Kia Motors America have announced the best-ever October sales with a 12 percent increase from the same period last year at 50,044 vehicles sold.
Their top-selling cars include Kia Optima, with 14,381 units sold, and Kia Soul with 12,246 units sold. These figures have put October as the sixth straight month Kia Motors America has been making record-sales this year.
"Kia is a challenger brand, and our ability to outpace the industry without the benefit of a truck in our lineup speaks volumes about consumers discovering the new Kia," said chief operating officer and EVP of Kia Motors America Michael Sprague. "With the all-new 2016 Optima arriving in showrooms and the completely redesigned 2017 Sportage making its North American debut at the LA Auto Show this month, this is an exciting time for Kia as we push toward a strong finish to the year."