Sales have risen more than 20 per cent a year over the past four years with about 38,000 expected this calendar year and, based on previous growth, about 50,000 for 2017.
New product – Rio, Picanto and a large Genesis-style sedan – are on the map for 2017 to further enforce potential sales growth.
Kia has also appointed two new dealers in Perth this week in the wake of new appointments of dealers in South Melbourne, Brisbane and the Gold Coast.
Kia network development manager David Kaing said the company “is constantly reviewing and looking at representation across the country”.
“We have finalised two in Perth this week that re-establish our representation in WA,” he said.
“Our presence fell back a little bit over the past eight months through a combination of dealer locations and finding the right partners to work together.
“We had two openings from January this year when we mutually chose to part ways with our previous dealers in the (southern suburbs of) Cannington and Melville primary market areas (PMAs).”
The new Perth dealerships are Maddington Kia – part of Tyson Sutton’s Regent Group and next door to the group’s Hyundai and Ford outlets – and Magic Kia Melville – part owned by Richard Bennett and within the Magic Group which includes Renault and Nissan dealerships.
Kia has also parted ways with a dealer in a Perth northern suburb and is now looking at filling that gap.
Mr Kaing, when asked about sales difficulties in WA’s current depressed market, agreed that many of its dealers are finding the market tough.
“In general, the WA market is depressed and that’s one of the reasons last year why we parted with the previous Kia dealers,” he said.
“We have to get the right dealers in the right PMAs. It’s not just about the raw (sales) numbers but having the right people in the right place and that’s part of the adjustment that has been going on over the past 18 months.
“Kia needs to find the right balance between maintaining dealer network sustainability with being able to provide a high level of service to our customers.”
The other dealerships recently added are Von Bibra Robina Kia in Brisbane (February); Norris Motor Group’s Brendale Kia (June) in Brisbane; and Jefferson Automotive Group’s South Melbourne Kia.
In addition to adding dealers, Mr Kaing said it was important that Kia retain valued dealerships.
“Kia has identified dealers not performing up to expectations over the past six to eight months and after increased focus, business improvements and investment, the results have been very pleasing to both Kia and the dealers which we believe will have a positive impact to our customers,” he said.
Mr Kaing said Kia has also been active in helping some dealers with shopping centre-based pop-ups.
“There is definitely value in this,” he said. “These dealers are continuously using shopping centres as a sales tool because they are getting good results.
“Most are adopting a combination of direct sales and as a way of generating leads to the dealership.”
Mr Kaing said some dealers were very pro-active by establishing pop-ups within their PMA to capture a broader market.
“This is popular with our dealers in Melbourne. Northern Motor Group in Melbourne, for example, actually takes a shop in a major Westfield centre,” he said.
“There are other dealers who will take a display stand for a couple of weeks to showcase the vehicles in order to generate inquiries and get the brand name out there.
“It is a combination of being driven by dealers and by ourselves.
“We have point of sale and corporate identity material available and we will help as much as possible.”
Kia is also moving its headquarters from Homebush in Sydney on September 5, taking two floors, a warehouse and workshop space in the city’s Macquarie Park.
Adjoining Jaguar Land Rover and within a hubcap throw of associate company Hyundai, the new Kia office covers 2102 square metres with an additional 1625 square metres for the warehouse and workshop.
By Neil dowling
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