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Thursday January 31, 2013

Naza Kia upbeat on new model

By THOMAS HUONG
huong@thestar.com.my


The new Rio is expected to play a pivotal role in growing Naza Kia’s sales volume this year. — Bernama The new Rio is expected to play a pivotal role in growing Naza Kia’s sales volume this year. — Bernama

PETALING JAYA: The new Kia Rio will be crucial for Naza Kia Malaysia in growing its sales volume by 22% to 15,000 units this year.

Naza Kia Malaysia chief operating officer Datuk Hafiz Syed Abu Bakar said the company was aiming to sell 200 Rio units each month.

“The new Rio will play a pivotal role in growing Naza Kia Malaysia's sales volume this year. With the new Rio, we would be able to tap into the growing B-segment market,” said Hafiz during the launch of the Rio at The Curve shopping mall in Mutiara Damansara yesterday.

Last year, the company grew its sales by 13% year-on-year to 12,309 units.

Hafiz said this year, the capital expenditure (capex) for Naza Kia Malaysia was RM60mil.

“Half is for outlet or network upgrading and infrastructure, while the other half is for new equipment and jigs at the assembly plant in Gurun, Kedah,” he said.

There are plans to open new Kia outlets in Rawang, Kuantan and Johor Baru this year.

At present, the Naza Kia network consists of 60 showrooms and 77 service centres.

Hafiz said the capex of RM60mil this year was significant, as the annual capex had been between RM30mil and RM40mil in the past few years.

He said this was in line with the company's plans to rapidly grow its sales in the next few years.

Naza Kia has targeted sales of 15,000 units this year, and sales of 22,000 units in 2014.

Hafiz said this year, the company would introduce six or seven new and facelifted models in Malaysia.

He said Naza Kia achieved a revenue of RM1.2bil last year, and was aiming to grow revenue by 25% to RM1.5bil this year.

It should be noted that the new Rio was Kia's best-selling model outside of Korea in 2012 with 466,826 units sold.

Hafiz said the Rio was aimed at those in their 30s and below, who wanted a trendy lifestyle vehicle that did not compromise on fuel economy and safety.

The new model is targeted at consumers under 35 seeking a youthful and trendy lifestyle vehicle that did not compromise on fuel economy and safety. It is priced at RM73,888 (EX variant) and RM79,888 (SX variant) on-the-road.

Hafiz said this would be another exciting year for the Kia marque in Malaysia, as several new Kia models would be introduced.

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