Kia knows how not to break and not to stand. In order to get rid of the status quo and pursue higher quality development, Kia has begun a large-scale replacement from 2021.
What did New Kia do in 2021?
In 2021, Kia unveiled a new flat logo at the Shanghai Auto Show, as well as the "customer-centric" brand concept and brand purpose. At the Guangzhou Auto Show, Kia responded to the dual-carbon strategy by releasing its corporate vision for a "sustainable mobility solution provider" and a "2045 carbon neutrality strategy", committing itself to becoming a sustainable mobility brand. These actions have laid the foundation for Kia's young, customer-friendly and green brand image.
In terms of models, Kia has greatly adjusted its product structure and accelerated the layout of mid-to-high-end products by listing the Smart Run Ace and the fourth generation of Jawa. It is worth mentioning that the fourth generation of Jawa is Kia's first model in China with a price of more than 300,000, and according to our previous test driving experience and interviews with real users, the price of this car is definitely supported by strong strength, based on this, the sales volume of this model in first-tier and new first-tier cities has reached 47.5%, which has been recognized by high-net-worth people.
Another figure shows that Kia's brand premium status is improving significantly, that is, kia's average retail price reached 141,300 in December 2021, a significant increase of 32,900 compared with 108,400 in 2019.
In addition to creating a better brand image and introducing more competitive models, Kia's corporate operation management in China has entered a benign track. Among them, the reduction of dealer inventory from 46,000 units at the end of 2020 to 19,500 units at the end of 2021 is a good proof.
What is New Kia going to do in 2022?
It is clear that Kia's initiatives in 2021 are bringing positive feedback to the brand's development. In 2022, Kia will also usher in a big move in China.
At the end of last year, Dongfeng Group announced the transfer of all its equity and the withdrawal of Dongfeng Yueda Kia's joint venture, so that kia's joint venture in China will become a joint venture between Kia and Yueda.
At present, Kia has announced that it will announce the name of the new joint venture and the new brand strategy on the eve of the Beijing Auto Show in April 2022. There are rumors that "Kia China" may be one of the options for the name of the new joint venture, and we predict that kia's share in the new joint venture will be increased to take more ownership.
According to the official information, the new Kia's big move in 2022 involves a variety of aspects.
First, China's position in the global market will be strengthened. The new joint venture will draw on Kia's successful experience in overseas markets, and will also be more closely integrated with china's special situation to achieve a combination of global advantages and local differences. In addition, the plant in Yancheng, Jiangsu Province, will become an important base for Kia's new energy vehicle production and overseas exports.
Then, continue to strengthen brand building. Among them, the newly established Kia Marketing Headquarters will play an important role.
In terms of organizational management, the focus of the change is that Kia will introduce more local talents who understand the Chinese market.
In addition, in terms of product launch, Kia has two major actions. First, gradually stop production of models below 100,000, introduce more high-quality global models, and improve brand positioning; second, strengthen the market introduction of electric vehicles. Specific to the model, Kia will launch the New Flagship SUV and its hybrid version and the K3 in the Chinese market in 2022.
At the same time, the EV6 pure electric vehicle is also expected to be introduced soon, and from next year, Kia will introduce at least 1 pure electric vehicle per year to the Chinese market.
What is New Kia's future strategy?
Based on the actual performance of the Chinese market, Kia has indeed reached a moment when it must not be broken, and based on the current development trend of the entire automotive industry, Kia has also made bold plans to judge the situation.
Among them, in addition to releasing a new logo in 2021, Kia also removed the "car" in its own company name, with the intention of breaking through the positioning of traditional car manufacturers, transforming into a mobility service provider, and expanding its own business possibilities.
Regarding the forward-looking plan for the future, Kia has released a new "Plan S" medium- and long-term strategy, a "Carbon Neutrality Strategy 2045". Guided by the medium- and long-term strategy of "Plan S", Kia will fully transform into electric vehicles, planning to launch 11 electric vehicles by 2026, 7 of which will be based on Hyundai Kia Group's new E-GMP electric vehicle platform. In terms of sales, Kia plans to achieve annual sales of 1.6 million new energy vehicles, including pure electric and hybrid vehicles, by 2030, while pure electric vehicles account for 55% to reach 880,000 units.
By 2035, Kia plans to turn itself into a 100% electric vehicle company in the European market and 100% electrification in major global markets by 2040.
Around the strategy of carbon neutrality, in addition to new energy vehicles, Kia will achieve green environmental protection in the supply chain and energy utilization. For example, based on the "Blue Carbon Project" for marine ecological protection, Kia will cooperate with the Marine Cleanup Organization to achieve a utilization rate of more than 20% of recycled materials for vehicle production by 2030. For example, Kia will gradually introduce solar power generation systems in its factories in South Korea, China and the United States, and expects to complete the conversion of renewable energy in factories around the world by 2040.
In recent years, Kia's sales performance in the Chinese market has not been satisfactory, but it still performs well in the global market. In 2021, Kia's global sales reached 2.777 million units, an increase of 6.5% year-on-year, and after the merger of the Hyundai brand, Hyundai Kia Group's global sales reached 6.668 million units, ranking third in the world as a super giant.
Then, with a new attitude, Kia's performance in China is likely to stabilize and rebound, and with a new vision, Kia is expected to maintain its dominant position in the fuel era in the new era of electric power.
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