Kia America’s CEO, Sean Yoon, recently spoke about the transformation of the car manufacturer over the past five years. Yoon stated that Kia has come a long way since the introduction of the Telluride in March 2019, which was the first new model launched under a revised long-term brand strategy. As a result, Yoon no longer considers Kia to be a value brand. Instead, the company is now attracting more affluent buyers than ever before, leading to a 60% rise in its average transaction price.

Kia’s Growth in Sales Volume and Affluent Buyers

According to Yoon, Kia’s retail sales volume has grown by 31% since 2018, excluding fleet sales. Additionally, the average transaction price has increased by 60% over the same period. Yoon attributes this growth to the company’s ability to attract more affluent buyers, including Gen Y and Gen Z buyers. He believes that this trend is a guarantee for Kia’s bright future because buying power is shifting towards these generations.

Kia’s Focus on Value and Safety

Despite the significant increase in average transaction price, Yoon stated that Kia is committed to keeping the value in their cars. The company plans to avoid bundling desirable options with less desirable ones and will roll out new safety systems without increasing prices.

Kia’s Transformation into the Electric Age

Kia’s transformation is continuing into the electric age. The company is differentiating itself from rivals with dramatic designs, as evidenced by the EV6 and the all-new EV9 SUV. Yoon expects the company’s strong internal combustion engine (ICE) sales to carry into electric vehicle (EV) sales. While the brand is only doing business in 60% of the market, its share recently jumped from a touch over 3% to 5%.

Kia’s SUVs and Sales Potential

Currently, Kia’s SUVs account for 80% of demand. However, Yoon believes that the company has not yet reached the sales potential for models such as the Sportage, Seltos, and Telluride. If sales of these models rise, Kia’s market share will too. The new EV9 is the company’s first electric SUV, and soon, the smaller EV5 SUV will be added to its range.

Conclusion

Kia America’s CEO, Sean Yoon, believes that the company’s transformation over the past five years has led to a significant increase in average transaction price and the ability to attract more affluent buyers. Despite this growth, Kia remains committed to providing value and safety to its customers. The company’s transformation into the electric age is also promising, with dramatic designs and a growing market share. With the addition of new electric SUVs to its range, Kia’s future looks bright, particularly in North America.