KIA Insider

Kia Australia predicting new-car sales to start recovery before 2021 as Seltos runs hot and new Sorento arrives

While the COVID-19 pandemic is wreaking havoc on the Australian new-vehicle market, especially in Victoria, Kia Australia believes sales will begin improving before next year.

The Australian new-vehicle market was down 20.4 per cent to the end of August, but Kia Australia is estimating it’ll have declined 17.6 per cent when 2020 is over. This means it’ll ‘only’ decrease 12.0 per cent in the final four months of this year.

With 876,000 new vehicles projected to be sold in 2020 (compared to 1,062,867 in 2019), Kia Australia is forecasting it will sell 54,000, which would be down 12.2 per cent over the 61,503 it managed last year.

Given its volume declined 13.6 per cent to the end of August, Kia Australia is expecting its sales to decrease ‘just’ 9.4 per cent in the last four months of 2020.

While a loss in volume either way, such a result would actually mean Kia Australia increasing its market share to 6.2 per cent this year, up from 5.8 per cent in 2019.

That said, Kia Australia was the sixth best-selling brand last year and maintained that position to the end of August, although it could move a rung or three up the ladder by the time 2020 is over, with Hyundai (third), Mitsubishi (fourth) and Ford (fifth) all within striking distance.

How well Kia Australia finishes this year will depend on the sales performance of two of its key models, the Seltos small SUV and Sorento large SUV.

The Seltos was the best-selling new small SUV for the first time last month and has given Kia Australia 5654 incremental sales to the end of August (2020 is its first full year on sale).

Meanwhile, the Sorento entered a new generation this month, albeit as part of a staggered launch, with 4800 annual sales predicted. For reference, 3777 examples were sold in 2019, while its volume was down 27.4 per cent to the end of August this year.

As such, these two models alone should be the difference-makers for Kia Australia in the short term, as 2021 is the great unknown on several fronts.

Source: www.carsguide.com.au




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