Korean brand clash

The new Kia Optima has been a sales success in its home market, Korea, since launch and is set to make the same good ground in its "general markets" including Australia when it is released early next year.

Meanwhile, sister brand Hyundai is selling its Sonata-turned-i45 midsizer... but buyers are opting for the Kia version. During the last quarter (three months') sales in Korea the Kia sedan has outsold the Hyundai offering.

It appears buyers are choosing the relatively young automaker's brand of sporty style over Hyundai's luxury bent. Is it upsetting Kia's big sister?

"Absolutely," Kia's Overseas Promotion Team Director Joong-Wook Wi told the Carsales Network this week in Korea.

"They [Hyundai] have been quite sensitive over new Optima," Wi admitted. "They want the first rank in the midsize segment."

Since losing that spot in its domestic market -- and key others -- to Kia, Hyundai has had to implement buyer incentives including low interest rate purchase deals.

The sales story is similar in the USA. Kia first showed the Optima (pictured here in Paris) at this year's LA auto show, taking both new car buyers and Hyundai dealers by surprise.

Kia uses its own suspension and steering tune for the Optima, and even implements a larger brake setup than Hyundai does for i45. To our eyes it's also a better styled vehicle than the i45.

"People know that they are buying established engineering in a Kia because it is also a Hyundai... So they can make a choice between them based purely on styling preferences. They are choosing Optima because of its design. Even though we share the same platform, we do have our own characteristics. We have our own brand identity," says Wi.

"Hyundai is heading to luxury features but we're heading to a younger buyer; focussed on the fun-to-drive aspects," he stated

The third generation Optima was penned by ex-Audi designer Peter Schreyer. Kia's cars have become more stand out and identifiable ever since Schreyer joined the company in 2006.

Kia has demonstrated it can offer well-produced, well-equipped and well-regarded cars "like Sportage" but it "needs to promote an identity," admitted Wi.

"We are focussed on brand awareness and making Kia more prominent in people's minds as well as on the roads," he said.

On Sportage, Kia says the compact SUV is also outselling Hyundai's ix35 -- in fact, supply has become an issue for most markets, including Australia. Supply isn't helped by the fact Kia currently sources its diesel engines from Hyundai, however, Kia will open a new engine plant in April 2011, helping satisfy demand, which is especially high in Europe.

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