Sales increased by 31%
Kia’s days as a budget brand are over as prices have skyrocketed along with sales. Kia America’s chief executive says the automaker has transformed over the past five years and is now attracting more wealthy buyers than ever before, resulting in a 60 percent increase in the average price.
During a recent interview with Auto News, Sean Yun said the company has come a long way since the introduction of the Telluride in March 2019, the first new model released as part of the brand’s revised long-term strategy. Sean Yun no longer considers Kia a budget brand.
Kia is no longer a budget brand. Prices soared 60% in five years
“In terms of retail sales since 2018, excluding fleet, we have grown by 31% and our average transaction price has increased by 60%. Huge leap in the last five years,” he said. “We’re seeing a lot more wealthy buyers and we’re doing well with Gen Y and Gen Z buyers. It’s kind of a guarantee of our bright future because before the purchasing power belonged to Gen X, but now more weight is shifting to Gen Y and Z.”
The brand’s SUVs and crossovers currently account for 80% of demand, but Yoon said Kia has yet to realize the sales potential of models such as the Sportage, Seltos and Telluride. If sales of these models increase, Kia’s market share will increase even more.
