The ground-breaking seven-year warranty, and seven-year capped-price servicing and roadside assistance program, has been equalled by MG Motor and SsangYong and has competition from limited seven-year offers from companies including Hyundai.

The peace of mind that the seven-year/unlimited-kilometre warranty brings to Kia buyers has singlehandedly demolished the reputation of Kia as being a cheap and cheerful player.

Mr Meredith told GoAutoNews Premium that most competitors are using an extended warranty as a retail business tool and not applying it across the board.

In answer to the move by MG and SsangYong offering a seven-year warranty, he said: “I respect every competitor but the most recent company that introduced a seven-year warranty is not a major competitor to Kia at this point in time.

“None of the top 10 brands have put a seven-year/unlimited warranty in place for all of their products.

“We said that from October 1, 2014, every one of our vehicles has seven-year/unlimited warranty. No-one has matched that in the top 10.”

He said that if Kia was challenged by any of the leading brands, then he would take the proposal to lift Kia’s warranty even higher straight to the parent company in Korea.

“What it (Kia’s warranty) has done is force the issue with competitors, moving some from three years to five years. I think that is great for the consumer,” he said.

Asked whether an extended warranty sells more cars, Mr Meredith said: “I think it, in the case of our seven-year warranty, gives people permission to look at our brand.

“It is also a good closing tool on the showroom floor.”

Mr Meredith has previously said that Kia could be prepared to go to as much as a 10-year warranty if other manufacturers offered competing coverage.

Kia offers a 10-year warranty in the US, but has a 100,000-mile (160,000km) limit. Australian buyers are covered for seven years without any distance limit.

“Customers have shown that they look to a long warranty as a key buying tool and one that gives them confidence in buying from that brand,” Mr Meredith said.

“There has been no doubt that it has been one of the main reasons for the growth in Kia sales over the past five years.

“We’re happy with our current warranty. There are some manufacturers who have limited offers on their warranties, so it’s not something we feel is a threat to us.

“We don’t see the need to increase the warranty at this time. For us, the reason we introduced the seven-year coverages (in 2014) was to increase consumer attention in our brand. And it has worked.”

The longest automotive warranty in Australia is held by Tesla, which offers eight years and unlimited distance.

Hyundai has long held a five-year warranty while many car-makers have moved in the past three years to a five-year warranty, including Honda, Ford, Holden, Mazda, Renault, Citroen, Peugeot and Skoda.

By Neil Dowling