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Lofty volume targets have been set for Kia by its Australian boss despite ongoing supply constraints.
As the Australian arm of the Korean brand unveiled its new Rio, Kia Motors Australia president and CEO MK Kim has plans to take Kia beyond 30,000 units next year on the back of the new light car, but it's unknown territory for breed.
"We're targeting 2400 (Rios) for the rest of this year, 6400 next year - if we didn't have supply constraints perhaps we could sell 8000," he says.
The company is also in negotiations and is confident of locking in the Picanto five-door hatch to slot in below the new Rio, but production capacity and timing remains an on-going theme for Kia. "We are asking for the Picanto as well, but it's the same problem - capacity - but we will keep trying to get it," he says.
Kim says the brand is on track for 25,600 for 2011, with a target well beyond 30,000 for 2012. "In July I asked Korea for at least 34,000 supply, but KMC doesn't have enough capacity to meet that demand," he says.
The Australian right-hand-drive market continues to play second fiddle to larger left-hand-drive markets (like the US) and the brand's home market of Korea for new models and new technology. Two of the brand's recent introductions - the new Optima and Sportage SUV - have received some critical acclaim but are not fulfilling their sales potential because of supply.
"We only get 20 or 30 Optimas a month, we need 200 - we don't do any marketing because we don't have any cars," he says. "Once they look at all the market demands they will look at ours, but at this moment is my aim is to hit 34,000 next year," he says.
So far this year Kia has (to the end of July) sold 14,701 - up 3.1 per cent on its YTD 2010 tally. Kia's 2010 performance of 23,848 was a 22.9 per cent increase on 2009. The affable Kia boss says its Sportage SUV still has issues with diesel engine supply as well as limits to production capacity.
"Our chairman's direction is not to increase production volume, he wants to focus on quality," he says.
Greener diesels, fuel saving technology and hybrid drivetrains are in the pipeline but will appear in Australia dependent on larger markets. Australia will see the fuel-saving Stop-Start system in Kia-branded cars as early as next year - promising fuel savings as high as 15 per cent - followed by diesels; hybrids and electric drivetrains will be unlikely before 2015 as there are no concrete plans.
Mr Kim has also indicated an interest in returning Kia to the light truck and van market.
"I'd like to get back the light trucks and vans, we sold 450 Pregio a month, Hyundai sells 500 a month or more with the iLoad - I have several times requested something similar to the iLoad but no luck yet," he says.
We'll have an in-depth road test and review of the new Kia Rio for you here on September 1.
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