Kia faces Chinese wave

What goes around, comes around, in the motor industry. Kia withdrew the licence for Ateco Automotive to distribute Kia cars in Australia a couple of years ago.

Now, Ateco is returning to the budget end of the market with a new Asian brand, Chery.

And if you were to name a company most at peril from this new presence, Kia would certainly be one to spring to mind.

Kia is not currently admitting to concern about the launch of Chery in Australia. President and CEO for the company in Australia, SK Lee says: "Australian buyers are seeking real value for money".

"It's one of our strong points. We are not cheap cars, we are reasonably priced," he emphasises, promoting the Korean brand, which has not only fought an uphill battle in Australia to establish itself, but has globally reinvented itself following its acquisition by previous arch-rival, Hyundai.

Locally, Kia has been riding a sales roller-coaster in recent years. The company's strategy to deflect the attack from Chinese brands centres around improving product (more here), which will continue to lift the Korean importer's profile in Australia. The company is looking forward to further incremental sales gains with the new Rondo mini MPV.

Kia will introduce a facelifted model of the slow-selling Magentis "very soon", in the words of S. K. Lee, President and CEO of Kia Motors Australia. "Once they drive [the Magentis], everybody is surprised," Lee said. "However, awareness is the problem."

The updated Magentis is due to commence production in August this year and will arrive in Australia the following month.

Its significance is about on a par with the diesel Carnival that Kia will release around the same time. This vehicle features a variable-vane geometry turbocharger, but otherwise runs the same 2.9-litre turbodiesel engine introduced with the K2900 commercial vehicle.

This engine is already available in Europe, fitted to the short-wheelbase Carnival, but will be sold in Australia powering the long-wheelbase model as well.

Kia also has plans to import the 'AM' small utility vehicle next year, based on the Soul concept car. As yet, the company is undecided as to whether the new model will be marketed under the Soul name. Peter Nochar, Kia Australia's Chief Operating Officer, describes it as "an antidote to the traditional hatchback".

In addition, Kia will definitely launch a small passenger car, the replacement for the Cerato, and a new SUV that is about 18 months away. The small car range will include a coupe variant, launched subsequently to the mainstream models.  Featuring the new corporate look, the new SUV will be a radical design, according to Nochar.

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