Kia struggles with supply crisis, ends November with 13% drop in sales
Korean carmaker Kia has reported a drop of 13 per cent in sales last month due to the ongoing supply crisis. With only 14,214 units sold in November, Kia’s sales has nosedived compared to the same period last year with a decline of more than 32 per cent.
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In October this year, Kia had reported sale of 16,331 units, which was a year-on-year decline of around 22 per cent. Within a month, the drop in sales has widened further.
Kia currently offers three models in India. The Seltos compact SUV and the Sonet sub-compact SUV are two of its best-sellers in the country and are one of the leading models in their respective segments. However, its luxury MPV Carnival barely contributes to the Korean carmaker's overall sales in India.
Kia is gearing up to launch its fourth product in India, a three-row SUV called Carens, next week. It is expected to be a more affordable option than Carnival and is expected to rival the likes of Hyundai Alcazar, Tata Safari and other three-row SUVs in the segment.
The Korean carmaker has also suffered a 13 per cent drop in sales globally, compared to November last year. The carmaker could sell 222,232 units last month, with just 46,042 units in its home turf where it saw a decline in sales by nearly 9 per cent.
One of the biggest factor behind the drop in sales is the chip shortage crisis. It has severely impacted production plans of almost every carmaker around the world.
Kia has issued a statement saying, “Going forward, in response to challenging business environment stemming from continuing Covid-19 and semiconductor shortage, Kia will continue to flexibly adjust its production in line with inventory status and to minimize production disruption. Also, Kia is witnessing gradual increase in the vehicle production beginning this September. Year to date, Kia is recording 7.6% increase in the global sales year over year reflecting the company’s strong product line-up."