Kia Motors announced price cuts for popular models including the K9 luxury sedan on Wednesday, following its sister carmaker Hyundai Motor’s recent price cuts.
The price cuts are largely aimed at maintaining their competitive edge in the domestic market amid an intensifying offensive by import brand cars. It is the first time ever for them to lower car prices.
On Wednesday, Kia unveiled the new 2013 version of the K9 with a lowered price tag. Despite its highly publicized launch last year, the first premium sedan by Kia has been suffering sluggish sales.
For the new model, the price of the entry line Prestige was frozen at 52.28 million won ($50,000), even though high-end features such as head-up display were newly adopted. The upper segment Executive was lowered by 2.91 million won to 55.3 million won.
“We tried to maximize customer benefits to offer high-end features while lowering the car prices,” said a Kia official. “Based on product quality and better pricing, we will sharpen our competitive edge over import sedans.”
Kia also slashed car prices of its flagship models ― the K5 midsize sedan and the New Soreneto R sport utility vehicle ― without changing specifications.
As of Jan. 1, Hyundai Motor offers 10 versions of its five brand models, including the Sonata, Genesis and Santa Fe, at discounted prices of up to 1 million won less than the 2012 models.
“Carmakers have adjusted car prices following price hikes of Hyundai and Kia. Their price cuts are also expected to affect pricing policy of other companies, including import brands,” said Kim Pil-soo, professor of automotive studies at Daelim College.
By Lee Ji-yoon (
jylee@heraldcorp.com)
