Kia Motors’ global sales increased by 21% during the last quarter – that is from April to June- compared to the same period in 2010. South Korea’s second-largest carmaker sold 621,000 units in that period, largely due to the increase in US sales.
Kia’s progress in the American market was impressive as it recorded a 67% increase in profits and 36% in sales, largely due to the surge in sales of its new Optima sedan and Sportage SUV.
Japanese manufacturers’ shortages due to the production disruption brought by the March disaster that hit Japan may also be one of the reasons for Kia’s rise according to analyst at Seoul-based Dongbu Securities’ Yim Eun Young.
But as Japanese companies recover and Kia’s market share may shrink, Young notes that this doesn’t necessarily mean that Kia’s sales volume will drop as well.
And he may be proven correct, as Kia has a strong new range of products and last month increased its US target for 2011. It also announced that it will begin producing the Optima at its US plant in Georgia from September.
Story via Bloomberg
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