Small engine plans for ChinaKia Motors plans to use smaller engines in its models in China, where the government has cut purchase taxes by half for vehicles with smaller powertrains.
The Seoul-based carmaker will begin offering a 1.6-liter turbo engine for its K5 sedan and Sportage sport utility vehicle and plans a new K2 hatchback next year that should benefit from the purchase-tax reduction, Chief Financial Officer Han Chun-Soo said Friday. Almost 70 percent of Kia’s China sales are small vehicles, he said.
The new engines will be crucial for Kia’s efforts to revitalize sales in China, as declining demand in the market contributed to profit falling 16 percent in the third quarter. Bloomberg