Kia eyes steady sales, increased market share in Russia
By Gleb Stolyarov
MOSCOW (Reuters) - Kia Motors (000270.KS: Quote) plans to maintain sales in Russia this year and build on its position as the country's third-largest carmaker by increasing its share of the ailing market, the company's Russian managing director told Reuters.
As Russia's car market has crumbled, hit by a steep economic downturn fueled by lower oil prices and Western sanctions, Kia has used lower prices to fend off competition and increase its market share to 10.2 percent.
The Korean carmaker now plans to sell 160,000 vehicles in Russia this year, slightly down from 163,500 in 2015 but representing a market share of around 11 percent as rivals' sales plunge, Managing Director Alexander Moinov told Reuters in an interview.
"As a minimum, we want to maintain our share. At best, increase it," Moinov said. "Our goal is the horizon. We will see where the market takes us."
Capitalizing on the success of its budget Kia Rio sedan, which was one of only four models to post positive sales growth in Russia last year, Kia has managed to weather the decline of Russia's auto industry better than many of its competitors.
It is now Russia's third-biggest carmaker after market-leader Avtovaz AVAZ.MM and Volkswagen (VOWG_p.DE: Quote). Kia sales fell 16 percent year-on-year in 2015 but outperformed a 36 percent decline in the market. Avtovaz and Volkswagen sales plunged 31 and 39 percent respectively.
"Kia are doing well in Russia as a result of having the right volume product in the form of the Rio," said IHS analyst Tim Urquhart. "It is rugged and reliable ... at a very competitive price point."
The Rio was Russia's third most popular car last year. Continued...