Despite concerns that a limited production capacity would slow its sales growth, Kia is determined to focus on product quality and the brand, the company's co-CEO Lee Sam-ung disclosed. The company has also revealed that it has no plans to establish new plants.
Lee further stated that they will release new models, enhance brand competitiveness and strengthen local promotions despite the forecast that worldwide vehicle demand will deteriorate. He added that the company will "try its utmost" in order to achieve the 2.5-million-vehicle sales target for this year.
Moreover, Lee disclosed that the company had not yet fixed the sales goal for next year, says Autonews. Kia and affiliate Hyundai Motors are expected to maintain strong sales this 2011 despite the uncertain economic outlook. However, their stretched production capacity has not been successful in keeping up with demand.
A Hyundai executive revealed to Reuters earlier this month that the company had no plans to build new plants. Also, Lee denied media reports that Hyundai-Kia did not plan to produce pure electric cars and would focus on hybrid electric vehicles.
Lee stated that the group intends to release all-electric compact cars in 2014 and 2015. To broaden its presence in the small-car segment, Kia is targeting sales of 260,000 units for its new Rio subcompact by 2012 internationally, an increase from the 110,000 this year. The Rio was Kia's No. 3 model in terms of sales in 2010 with global sales reaching 224,942 units.