Published on September 06, 2005

Kia Motors Thailand, which is owned by Yontrakit Group, is stepping up its marketing campaign to boost declining sales.

The Kia Carnival 7-seater MPV and the K2700 mini-truck will be the focus of the promotional campaigns.

Kia’s success in the Kingdom relies on its cornering of a niche market. Kia’s total product range consists of four products: the Carnival MPV, K2700 mini-truck, Carens MPV and Sorento SUV. Insiders at Kia state that launching any further cars on the Thai market is out of the question due to the fierce competition from Japanese brands.

“We cannot compete in any way with products already doing well on the market due to the government’s FTAs [free-trade agreements] with a number of countries,” noted a high-ranking official.

The Carnival, which is a large-size MPV, is beginning to witness a decline in sales due to mini and mid-size MPVs from other brands. Company officials claim that the Carnival is among the few “true 7-seaters” as opposed to other models like the Toyota Wish, Honda Stream and Chevrolet Zafira, in which the seats at the very rear of the vehicle are not as user-friendly.

In 2004 just 450 units of the Carnival were sold and a further drop in figures is expected this year.

Rising fuel prices are being blamed as a major reason for the drop in sales.

Due to the government’s promotion of Gasohol, there has been a higher demand for vehicles that are compatible with the fuel.

Kia Motors says it provides no guarantees for the usage of 95 Gasohol but despite this Kia dealers are promoting its use.

Kia has not tested the engine of the Carnival using 95 Gasohol, but company officials say that as the Kia uses Japanese technology it is likely that the engines will work efficiently with 95 Gasohol.

In the case of the K2700 mini-truck there have been no cancellations of orders despite the diesel price hike.

This illustrates the K2700’s advantage over other pick-up trucks being bought for business use, as the buyers require its extra size and space.

In terms of Kia’s new products, the re-branded Carnival, which is larger than the original and aimed at the high-end market, will launch in the US under the name “Serdona” and is likely to be called the same in Thailand.

The mother company in Korea has already halted production of the original Carnival.

Currently only the left-hand drive version of the new vehicle has been developed but the right-hand drive version is likely to be on show at the 27th Bangkok International Motor Show next year.

As the Carnival is upscaled, the Carens, which is currently a 5-seater and not performing well in the Thai market, will be sized-up to accommodate 7 people.

Vijo Varghese

The Nation

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