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Business >> Wednesday October 08, 2008
 
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AUTOMOBILES

Kia sales forecast cut in hard times

SANTAN SANTIVIMOLNAT

Sluggish sales of Kia vehicles as a result of the uncertain political and economic outlook and record-breaking diesel prices have Yontrakit Kia Motor Co to revise down its sales target this year.

Managing director Sathit Techalarp-amnuay said that overall, the automobile market still grew steadily by 3.9% in the first eight months this year to 413,376 units while vehicles sales in August alone rose 5.27% year-on-year.

The growth was helped by many new model launches as well as promotional campaigns by car companies. Coupled with the trend toward lower fuel prices after oil spiked in July, the vehicle sales in August grew satisfactorily, and September was estimated to have been good as well.

Mr Sathit said his company sold only 1,300 Kia units in the first eight months, most of which were Picanto city cars and the remainder were K2900 light trucks, Grand Carnival multi-purpose vehicles (MPV), Carens MPVs and Sorento sport-utility vehicles.

As sales were sluggish due to the many unfavourable factors, the company decided to reduce its sales target this year to 2,000 units from 2,400 projected earlier.

In addition, Kia sales could not move to the expected level in the past eight months because of the delayed deliveries of K2900 light trucks to customers.

"This problem has been solved and customers can now receive the trucks they have ordered," he said.

To spur sales in the fourth quarter, the company has launched a campaign allowing customers to pay only 50% of the downpayment, interest and first-class insurance policy in combination.

Models eligible for the campaign include the 1.995-million-baht Sorento CEO V6 3.5 L, the Sorento 2.5CRDi (1.838 million), the Carnival GS (1.289 million), and the 990,000-baht Carens.The campaign will end on Nov 15.

The company has also become the authorised importer of the Malaysian-made the Naza Forza city car after importing the Kia Picanto from Malaysia. The Forza imports benefit from low tariffs under the Asean Free Trade Area agreement.


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