SHANGHAI ― A Shanghai dealership for Kia Motors has seen its number of visiting customers rise more than 10 percent since anti-Japan sentiment across China escalated last month amid their bitter row over a group of uninhabited islets.

“We have 15-18 percent more customers recently following the China-Japan territorial disputes,” said He Renzhou, general manager at the best-selling Kia outlet in Shanghai.

“Even before that, the car sales of Japanese companies had been declining. Meanwhile, Kia has successfully renewed its brand awareness based on product quality and design here.”

So Nam-young, CEO of Dongfeng Yueda Kia Motors Co., still seemed hungry for growth, downplaying some “reflexive benefits” from the anti-Japan sentiment among Chinese car drivers.

“After the situation is resolved, Japanese carmakers will step up their offensive to make up their sales loss. We are just trying to get ready for that time,” he said.

Kia, like its sister company Hyundai Motor, entered the Chinese market in 2002 as a joint venture with China’s Dongfeng Motor Corp. and Yueda.

After 10 years of operation there, Kia has become the No. 7 brand in terms of car sales at 254,000 units among 51 carmakers competing in the world’s largest car market.

Now about 25 percent of Chinese customers visit Kia dealerships to replace or upgrade their cars with new ones, according to company officials. Of them, 40 percent used to drive Chinese-brand cars or lower-segment Volkswagen models.

In order to meet the sales target of 475,000 cars this year, Kia pins high hopes on the newly launched K3 compact.

After the China-only K2 ― the Rio in other overseas markets ― became a best-selling car, Kia launched the K3, the latest model of its flagship K series, on Oct. 16.

In order to better appeal to the luxurious taste of Chinese drivers, the K3’s body is 40 millimeters longer than its predecessor, while its signature radiator grille and other trims are polished.

Kia claims the K3 features better engine performance, fuel efficiency and design at a lower price tag compared to its rivals including the Volkswagen Lavida and Honda Civic.

“We have sold 15,000 units and aim to sell 20,000 within the year,” So said, showing confidence in a sibling rivalry with Hyundai’s Langdong, the Chinese version of the Avante, as well.

The Chinese chief of Kia predicted moderate growth of the Chinese car market in the coming years and that the Chinese government would introduce more policies aimed at local brands and control the number of soaring vehicles.

With its third Chinese factory under construction, Kia plans to diversify its sales portfolio ranging from small compact cars to mid-sized sedans and sport utility vehicles.

The K9 luxury sedan is also waiting for Chinese authorities’ approval to be officially imported. Despite the sluggish sales in Korea, the high-end model has high potential if the price is decided properly, So added.

By Lee Ji-yoon’ Korea Herald correspondent
(jylee@heraldcorp.com)