June marked Kia’s 11th month in a row of sales gains
Kia America posted second-quarter U.S. sales of 210,197, an increase of 15 percent compared with the year-ago quarter. June sales rose 8 percent to 70,495 and marked Kia’s 11th consecutive month of gains and the seventh time Kia has posted more than 70,000 sales in a single month.
Kia also set a first-half record, with sales of 394,333, up 18 percent compared with 2022.
Eric Watson, Kia America’s sales chief, told Automotive News that compared with the first six months of 2021, a notably strong period for the industry as consumers flocked back to showrooms following the pandemic, Kia’s first-half results were up 5 percent.
Watson attributed Kia’s record first-half results to the strength of its crossover lineup, which logged an increase of 26 percent in the first six months.
Kia’s Forte sedan also is doing well thanks to urban shoppers, who still prefer smaller, more cost-efficient vehicles.
“Looking at markets on the West Coast like Los Angeles and San Francisco, as well as others, they are still heavy sedan markets, and we are doing really well there,” Watson said.
Watson said supply is returning for some models that were constrained during the pandemic, including the Carnival people hauler and Seltos entry-level crossover.
Though the supply chain isn’t out of the woods, Watson said, it’s “much improved and stable.”
“Our production is up and we’ve been able to sell that because our sales are up year over year, but we’re not building dealer stock,” he said.
Demand for the EV6 and Niro EVs continues to slide due to the loss of the $7,500 tax credit, but Watson says he sees recovery in the second half.
“There is still confusion in the market around incentives and charging, but we’re gaining momentum and back on the track that we want for EVs,” he said.
Notable nameplates: EV6, down 43% in June and 32% in Q2; Niro, up 84% in June and 13% in Q2; Telluride, up 4% in June and 13% in Q2; Sportage, down 2% in June; up 12% in Q2; Sorento, down 3% in June; up 7% in Q2; Seltos, up 158% in June and 114% in Q2; Carnival up 34% in June and 73% in Q2; Forte, up 11% in June and 11% in Q2.
Inventory: Kia has been hovering at a 12- to 15-day supply for the past five months, according to the company.
Quote: “The entire country needs additional charging infrastructure no matter what the standard the OEMs are using. Between the Inflation Reduction Act, the promises the government has made to invest in infrastructure and what private companies and industry are doing, that combination plus the actual growth of the number of chargers will be more meaningful and impactful than what standard different companies adopt.” — Eric Watson, head of sales for Kia America
Did you know? Kia is preparing its dealers to start sales of the three-row EV9 electric crossover in the fourth quarter.
