by Kia Changes Strategy in the US Market
Automaker Kia plans to reduce marketing incentives for buyers, which will allow the company to save up to $435 million over the next year. The brand is also changing its logistics: models produced in the USA will be primarily directed to the local market, while cars from South Korea will be exported to other countries, including Canada.
Instead of raising prices, Kia is choosing a different path — reducing discounts and special financing terms. This may affect the final cost of the car for consumers, although official prices will remain unchanged. The company explains these steps by the complex market situation, including the expiration of tax incentives for electric vehicles in the USA and growing competition in Europe.
Ambitious Goals Despite Challenges
Despite forecasts of worsening business conditions, Kia sets itself the task of increasing its US market share from 5.1% to over 6%. Key models such as the K4 and Carnival are expected to play a crucial role in this. The company’s CFO, Kim Seung-jun, stated:
“We believe we can use the difficult situation as an opportunity to grow our market share — this is our strength”
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The first half of the year has already brought Kia certain difficulties: the company’s operating profit fell by 24% compared to the same period last year. However, the manufacturer continues to adapt to new conditions, changing both supply chains and marketing strategy. It remains to be seen whether these measures will allow the company to achieve its goals in the second half of the year, especially against the backdrop of a general cooling of demand in the automotive market.
