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Kia's Iran assembly unit plans new model

Kia's assembly plant in Teheran, jointly run with its local partner Saipa, is currently rolling out some 100,000 units of 'Pride' per annum. "Pride has been in the market for quite some time, and given the fast growing popularity of our brand in the region, we are pondering the introduction of other models from the plant," said D.K. Kim, director, Regional Headquarters for Kia's Middle East and Africa Operations, based in Dubai. The Teheran unit is one of the 10 overseas plants KMC operates.

Kim said Kia's sales in the region had doubled in three years - from 20,000 units in 1999 to 40,000 units in 2002. In the process, Kia's market share in the UAE also grew to three per cent from 2.7 per cent. Last year, Kia's UAE sales reached 3,000 units. He said the vision of KMC, part of the Hyundai Group, is to emerge as one of the top five automakers in the world by 2010.

Kim said he was optimistic of achieving a 12 per cent regional sales growth for the brand this year despite market uncertainties amid looming war fears in the region. "With several new model launches, including the new luxury sedan Opirus by Mid-2003, the targeted growth is possible." In the region, Saudi Arabia is Kia's largest market with sales of some 11400 units, followed by Syria where Kia sold 10,000 units last year. Worldwide, Kia sales surged some one million units last year.

Speaking at the opening of a new Dubai showroom yesterday by Al Majid Motors Co., distributors of Kia vehicles in the UAE, Kim said the new investment underscored their commitment to customers care and service.

Samir H. Tayeh, general manager, Al Majid Motors Co., said the showroom is the first in a chain of new facilities planned to be set up in various location throughout the UAE. He indicated that Al Majid Motors would be investing some Dh50 million over the next couple of years in expanding facilities for the Korean automotive brand in the UAE. Kia has now five major sales outlets in the UAE in addition to nine service centres and 11 spare parts outlets.

At the new showroom, four new Kia models also went on display. These include Sorento, a 4x4 car priced from Dh70,000 to Dh87,000; new versions of Optima and Rio; and Carens.

Kim said a new group company of Kia, Mobis, started operation in Jebel Ali Free Zone from third quarter of last year.

Mobis, responsible for the supply of spare parts and accessories for Kia vehicles, designed to meet the requirements of Kia distributors in the region, was set up with an investment totalling Dh45 million.