Kia sales plunge in China amid dealer inventory spat

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Kia sales plunge in China amid dealer inventory spat

Kia Motors, Korea’s second-largest carmaker, saw its sales in China last month plunge 38.9 percent, amid a dispute with some of its Chinese dealers over inventory, company and industry sources said Sunday.

The automaker’s sales fell to 30,080 vehicles in January in China, from 49,259 vehicles in December.

Industry sources suggested that Kia may seek to reduce its unsold cars before it begins selling new models.

The sharp decline in China sales came as some dealers reportedly asked Kia to compensate them for losses that stemmed from unsold cars. Yoo Ji-woong, an analyst at eBest Investment & Securities, said in a report that Kia’s sales in China were partly hit by a decline in production as dealers demanded to be compensated. Yonhap




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