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Kia pins SA market growth hopes on new sedan entry

21st June 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Current rand weakness against major global currencies is likely to persist for another three to four months, says Kia Motors South Africa (KMSA) CEO Ray Levin.

“The rand is running a little rampant at the moment, so we are faced with increasing [car] prices. But we have been through this before. This is nothing new.”

However, recent currency moves have not been bad news to all vehicle manufacturers.

Levin says the last few months saw the devaluation of the Japanese yen against the US dollar, which has had a “reversed” effect on local pricing in some cases.

“We have seen incentive campaigns from Japanese brands reintroducing models at lower prices,” says Levin. “So the market is a bit more competitive now, but we are not about to lie down and die.”

Kia is lagging market growth in the South African passenger car market year to date, but this is more the result of stock shortages than pricing, notes Levin.

KMSA sold 26 337 vehicles in South Africa in 2012 and is at 9 378 units for the year to date.

The target is to sell 27 000 units locally in 2013, says Levin.

One model which is set to play a key role for KMSA is the new Cerato sedan, launched in May, set to be followed by the hatchback and Koup derivatives later this year.

The third-generation Cerato was created at Kia’s American Design Centre, in Irvine, California. The word ‘Cerato’ refers to the Greek word for horn.

The new model will compete with the Honda Civic, Hyundai Elantra, Chevrolet Cruze, Ford Focus and Toyota Corolla, among others.

“The Cerato will play a key role in capturing market share for us,” says KMSA sales director Zian van Heerden. “It is longer, lower and wider than its predecessor.”

Pricing starts at R219 995.

Globally, Kia in South Korea expects to intro- duce 55 new models and face-lifts to existing models up to 2017.


The new Cerato is available in South Africa in three different equipment levels across two engine types: the 1.6 EX, 2.0 EX and 2.0 SX.

The vehicle features three different types of instrument cluster designs across the range. A segment-type liquid crystal display (LCD) cluster is standard on the 1.6 EX model, while a dot-matrix LCD cluster, standard on the 2.0 EX model, offers a broader range of information.

The 2.0 SX model is fitted with a colour LCD cluster. This features a graphics user interface with a 4.2-inch screen and high-intensity white lighting.

Standard features on the 1.6 EX base model include a manual air conditioner, automatic light control, built-in Bluetooth, steering-wheel- mounted cruise control, front and rear electric windows, daytime running lights, an MP3/iPod/ USB compatible radio with a CD front loader, rear air vents, six speakers, steering-wheel-mounted remote controls and 60/40 rear split seats.

Upgrading to the more powerful 2.0 EX model adds leather seats, as well as the option of a sunroof. A flex-steer system also allows the driver to individualise his or her driving style to normal, sporty and comfort.

The top-of-the-range 2.0 SX model includes xenon headlamps, a rear-view camera, a smart key with stop/start button, a smart welcome lighting system and front and rear park distance control.

This model also features electronic stability control and hill-start assist, which prevents slip-back during stop-start driving on inclines.
The new Cerato is manufactured in South Korea and is available in a choice of two petrol engines – a 118 kW, 2 ℓ Nu engine and a 95 kW, 1.6 ℓ Gamma engine.

The 1.6 ℓ engine offers 157 Nm of torque at 4 850 rpm, and the 2 ℓ engine 194 Nm of torque at 4 800 rpm.

Drivers are offered a choice of manual or multimode automatic gearboxes.

Safety technologies standard on all models include antilock braking with built-in electronic brake-force distribution, impact-sensing auto door unlock, as well as six airbags.

All models come standard with a five-year/ 90 000 km service plan, a five-year/150 000 km warranty and a three-year/unlimited roadside assistance plan.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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