Kia Motors Emerges as a Global 'SUV Powerhouse'

'Telluride' Racing in the US and 'Sonet' in India
Popular Models in Korea: Carnival, Sorento, and Seltos

Sorento (Photo by Kia Motors)

[Asia Economy Reporter Kim Ji-hee] Kia Motors is emerging as a strong player in the sports utility vehicle (SUV) market not only domestically but also overseas in countries such as the United States and India.

According to the industry on the 10th, Kia's recreational vehicles (RVs) sold 27,707 units domestically last month. During the same period, passenger models such as compact cars and sedans sold about 10,000 fewer units, totaling 17,275. As a result, cumulative sales through the third quarter this year reached 187,984 units for RVs, surpassing passenger models at 178,509 units.

Last month, the new 4th generation Carnival's new car effect was noticeable, but besides the Carnival, many SUVs such as Seltos, Sorento, and Mohave continue to enjoy steady popularity. The new Carnival, launched in August, began full-scale deliveries in September and achieved an impressive sales volume of 10,130 units in just one month. However, due to weakened demand ahead of the new model launch, cumulative sales this year remain at around 35,000 units, which is more than 25% lower than last year.

On the other hand, the newly launched Seltos and Mohave in the second half of last year have steadily accumulated sales, contributing to Kia's performance. From January to September, sales of Seltos and Mohave increased by 2.5 times and 4 times respectively compared to the same period last year. Additionally, the new Sorento has firmly supported this growth, strengthening Kia's position as a traditional SUV leader.

Kia's SUVs are also expanding their presence in overseas markets. In the United States, the North America-exclusive large SUV 'Telluride' stands out. Last month, Telluride sold 8,829 units, which is more than 1,500 units higher than Kia's global best-selling model, the Sportage. Along with the Telluride, the Seltos (5,613 units) also achieved its highest-ever sales performance.

The popularity of SUVs has been a significant driving force behind Kia's rebound amid the COVID-19 crisis. In September, Kia sold 55,519 units, a 24.4% increase compared to the previous year, with two-thirds of these being SUVs. SUV sales surged by an impressive 35% during this period.

In India, the compact SUV 'Sonet' is popular. Launched on the 18th of last month, the Sonet sold 9,266 units in less than half a month, accounting for nearly half of Kia's total monthly sales. It is already known that local orders exceed 35,000 units, making supply management a key issue.

An industry insider predicted, "The new car effect of Kia's SUV models, which are currently driving performance in each major market, is expected to continue well into the fourth quarter."