In 2021, when the Chinese auto market enters a period of deep adjustment, Kia will usher in a new stage of development in China. China has become the world's largest automobile market for many consecutive years, in the face of the upcoming 2022, what kind of development potential and market decisions Kia will have, Caijing Auto has the honor to contact Liu Changsheng, general manager of Dongfeng Yueda Kia, to see how he will interpret the future development of the Kia brand in China.
In the face of the ever-changing market environment, Liu Changsheng, general manager of Dongfeng Yueda Kia, said, "2022, Kia will usher in the second phase of development of the Chinese market, which is a key step taken by Kia based on the global Turn-around strategy and an important measure for Kia to feed the Chinese market. In the face of the rapidly changing new market pattern, Kia will start again in the Chinese market with the new attitude of new power startups, and increase investment in brands, technologies and products with a more Chinese attitude and action to better meet the needs of Chinese consumers. ”
Kia brand renewal
At the beginning of 2021, Dongfeng Yueda Kia encountered market downward pressure in the Chinese market, and faced with the double pressure of joint venture pressure and The upward pressure of Chinese brands, the brands of Korean car companies were challenged. At that time, the Korean brand had also realized the seriousness of the problem and made adjustments in time.
From the strategic level, Korean brands Hyundai and Kia will strengthen localization research and development, launch exclusive high-quality products and services for Chinese consumers, with the development trend of the electrification era, Korean brands will introduce global exclusive electric vehicle products to the Chinese market, further apply hydrogen energy technology, and promote the transformation and upgrading of joint venture brands.
As the world's largest automobile market for many consecutive years, Li Guangguo, president of Hyundai Motor Group (China), once said, "In China's fiercely competitive market, we must uphold the brand concept of 'customer-centric', practice the development strategy in China, and achieve a new leap." "It is not difficult to see from this that after 2021, the two major Korean brands of Hyundai and Kia will have new adjustments in China, and now with the completion of the adjustment, the Kia brand will usher in a new opportunity."
When Communicating with Liu Changsheng, general manager of Dongfeng Yueda Kia, the other party said that "in 2022, Zia will usher in new changes, dongfeng Yueda Kia (DYK) will change from a three-party joint venture to Yueda and Kia's two-party shareholding, increase investment in brands, technologies, products, etc., and at the same time start to carry out new changes from within, adjust the structure of personnel and dealers, and change the development of Kia in China." ”
At the beginning of 2021, the release of Kia's new LOGO and global brand slogan "Movementthat inspires" witnessed the 77-year-old Kia brand renewal moment, which means that Dongfeng Yueda Kia will usher in a new beginning with a new attitude.
Products are globalized
Today, with the launch of Kia's new LOGO image, the first Kia global product, the fourth generation of Jawa, has landed in the product layout, which is a key step taken by Kia based on the global Turn-around strategy.
Liu Changsheng said, "The Ka Wah listed this year has a very strategic significance for our quality route, and Ka Wah is our first MSRP product with an MSRP of more than 300,000 yuan. We hope that from cars to SUVs to MPVs, these changes will successfully get good feedback from the market. At the end of next year or the beginning of 2023, we will invest in a new electric vehicle in the Chinese market every year. Starting from the form of trying to import electric vehicles, we will expand our electric vehicle market layout. ”
In terms of product layout, Kia will seek high-quality development in the future, and models priced at less than 100,000 yuan will be discontinued in an orderly manner. At this year's Guangzhou Auto Show, Kia brought two pure electric models EV6 and EV6GT based on the global E-GMP, as well as the newly launched Smart Run ACE and the fourth generation Of Ka Wah. This is also in line with China's current transition stage from traditional fuel vehicles to Hybrid hybridization, and Kia's acceleration of the introduction of global Hybrid hybrid models into China is also opportune. At the end of next year or the beginning of 2023, Kia will invest a new imported electric vehicle in the Chinese market every year, promoting Kia's global products to synchronize with the Chinese market.
In 2022, Kia will increase its local technology research and development and investment efforts, as one of the global kia bases, Kia is one of the largest local investment enterprises in Yancheng, Jiangsu Province. In the strategic layout of global Kia, Kia regards Yancheng as an important hub for production and export, helping the sustainable development of Yancheng and even the Yangtze River Delta economy. In terms of technology research and development, Kia will further increase investment in the Yantai Technology R&D Center and the Shanghai Digital Technology R&D Center.
Focus on the user market
As Dongfeng Yueda Kia's first car to sell for more than 300,000 yuan, Kahua has greatly improved Kia's average MSRP (official guidance price) in China compared with last year. From the perspective of product sales, Kia Kahua's domestic performance has not reached Kia's sales expectations, and the price of about 300,000 yuan will bear more market pressure on Ka Wah, but in order to get rid of the previous cost-effective label as soon as possible and no longer take the way of low-price competition, Kia is winning the recognition of consumers through product competitiveness.
Liu Changsheng said: "Kia's strategy has been rolled out in Europe, the strategy of brand promotion in the Chinese market has not been implemented for the time being, or it has not been effective, and whether the experience in China is really effective remains to be examined." Our current action is that models including the Smart Run Ace do not compete at low prices, and products similar to The Positioning of Jawa are the direction Kia wants to push, and there is already an upward trend. Not oriented by high sales goals, more to improve product quality, to enter a higher level of the market, after getting small success, slowly enhance the brand power, and then seize the market. ”
Kia also realized that in the short term, it will not achieve the peak of annual sales of 645,000 vehicles, which is also doomed, Kia will change the existing sales model, committed to the boutique product route, new cars and electric vehicles will gradually be put into the Chinese market, while re-improving the network layout, according to the actual product strength, dealer capabilities, the company's ability to sell. The sales model will be readjusted, and in the construction of the dealer network, Kia will move the global Kia model to the Chinese market, according to 70% of the reference to the global Kia experience, 30% combined with the Chinese market environment for dealer layout.
Before 2023, Kia will import imported models into China, and the sales model will also be adjusted, in this regard, Liu Changsheng said that "the sales of imported cars are not only through dealers, like Volkswagen ID after the listing is sold from 4S stores and ID Stores, Kia does not rule out through 4S stores, agents, city stores, business circle stores to promote." Starting in the second half of next year, the sales network will slowly roll out. ”
Optimize the personnel structure
In 2022, while the brand is renewed, there will be new changes in the personnel structure. Under the concept of "customer centricity", Kia will take improving the efficiency of decision-making as the primary direction and decision-making as the core point.
Kia's changes should start from the inside out, in which Liu Changsheng said, "Kia will add some new departments, such as new energy sales departments, brand-related personnel, network departments, etc., will be changed and added." ”
At the same time, Shao Fengming, director of the marketing department of Dongfeng Yueda Kia, said that "first of all, we must establish an efficient organizational management system, including the introduction of local talents who understand the Chinese market better, and at the same time, promote internal high-quality talents." ”
A new 10-year vision
Kia is one of the few companies in the world that has a presence in the four major technical fields of hybrid HEVs, pure electric vehicle EVs, plug-in hybrid vehicles PHEV and fuel cells. According to the data, hyundai Kia's sales of new energy vehicles ranked fourth in the world in 2020, but the presence in the Chinese market is not strong, which to a certain extent has reflected that Kia's products and brand power have yet to be recognized by the market.
Europe's good sales undoubtedly prove that its product market competitiveness exists, Kia for the Chinese market still need time to prove, in the future, Kia will also have pure electricity, hybrid and other new energy models to provide Chinese consumers with higher quality choices.
By 2030, Hyundai Kia Group plans to expand its new energy product matrix in China to 21 models, covering hybrid vehicles and hydrogen fuel cell vehicles, with a global sales target of 3.5 million new energy vehicles, of which Kia's new energy product sales target is 1.6 million units. In the Chinese market, the proportion of hybrid and pure electricity sales is planned to reach a 50:50 distribution ratio. Kia will launch a new electric vehicle every year, and the hybrid model will be strengthened, and the hybrid model will always be developed to provide Chinese users with a comprehensive mobility solution.
2022 is an important year for the development of Kia's brand in China, and after Kia has undergone all-round and deep-level changes and adjustments in 2021, Kia is gradually coming out of the trough. With the rebranding and value enhancement, in 2022, the Genia brand will continue to adhere to the customer-centric approach and achieve a double increase in product and value.