Dubai: South Korea’s automotive brands are not going to be dictated to by their Japanese counterparts trying to take competitive advantage through the weak yen. Instead, they are fighting back by ramping up on the features and options packed into their models.
“We have always maintained a price-oriented focus, but that’s not going to be enough,” said Samee Ahmad, Marketing Manager, Al Majid Motors Co, which is the dealership for Kia. “The most we can do with any new launch is make sure the price does not get too high.
“The other option is to offer more options at the same price or even lower. Being feature oriented gives us that extra edge — more so these days with the currency situation which makes Japanese imports cheaper.” (For well over a year and more, the yen has been in a favourable
That is exactly what it has gone and done in the all-new Sorento, the mid-tier model within the Kia SUV line-up here. “Smart tailgating and blind spot detection are standard in the top version of the Sorento, and on a like-for-like basis that’s something the competition do not have and certainly not at our prices,” said Ahmad. “Such features, including lane change warnings, are no longer the monopoly of the top-of-the-line models.”
The new Kia model, available in 2.4- and 3.3-litre, has a price range starting from Dh89,000 to Dh129,000. “With the Sportage starting at Dh72,000, which is our best-selling SUV version, there’s a nice price differential with the Sorento,” said Ahmad. “We have had a good start selling 40 units of the Sorento last month.” (There is a third Kia SUV in the form of the Mohave, whose buyers include the Dubai Police.)
The dealership had overall volumes of 15,000 Kia units last year, and is angling for an 10 per cent growth in the current one. “There’s been a bit of a slow down in the overall automotive market, including on the fleet side” said Ahmad. “But a double-digit growth for us is still doable, and the other planned launches this year should help with that.”
Before the year end, two all-new versions of current models are due, while next month will see the arrival of the first shipments of Grand Carnival, the people mover. “Having an extensively revamped line-up at around the same time is always good for the volumes.”
