Will Kia Philippines have to to abandon the China-source Soluto sub-B segment sedan and the Stonic sub-compact SUV? If the reports coming out of China are true, these two models may soon become a victim of the Korean carmaker’s upmarket push.
With China scrapping its cap on foreign ownership of automotive joint ventures, Kia is revamping its operations there in order to become more competitive. The joint venture, a 50-25-25 partnership between Kia, Yueda, and state-owned Chinese automaker Dongfeng Motor Group, will be revamped into a 50-50 partnership between Kia and Yueda.
The ownership restructuring, will simplify decision making and improve operating efficiency in Kia.
Amidst the capital reshuffle,
Automotive News
reports an interesting new move for Kia in China:
The Korean brand will start to phase out production of vehicles priced below 100,000 yuan (USD 15,723) to elevate its brand positioning, according to information disclosed by Yueda [Kia’s joint-venture partner in China].
The move is intended to address a long-standing problem confronting Kia in China: with low-priced models such as the Pegas [Soluto in the Philippines] and Forte sedans and the KX1 crossover [Stonic in the Philippines], Kia is increasingly seen as a value brand. That has forced it to compete on price with Chinese peers.
The possible demise of low-priced models though will result in more competitive Kia products, with some headed for export markets. Again, per Automotive News:
Kia plans to upgrade and add technology, driver assistance, connectivity, and infotainment features across its China product lineup and accelerate the introduction of new and redesigned models, including electrified vehicles.
The Korean brand will roll out 6 locally produced full electric vehicles developed on a dedicated EV platform though 2027, with the first model, the EV6 crossover, slated to hit the Chinese market in 2023.
To boost the joint venture’s sales, Kia has also pledged to export more vehicles to markets outside China.
If this report is true, it could potentially hurt Kia Philippines as the
Soluto and the Stonic combined make up more than 50 percent of their annual 2021 sales
(58 percent to be exact).
Keyword: Is Kia Going To Discontinue China-Made Soluto, Stonic?