Kia Motors Corp., the nation’s second-largest carmaker, is increasingly betting on cutting-edge design to expand its market share, and the effort is showing off.

Kia vehicles were taking over the first ever Automotive Brand Contest organized by the German Design Council in the past week. It was the winner in four categories. It was ranked “Best of the Best” after the compact Sportage SUV, Rio and all new Kia Optima were picked as winners for the exterior category. The “Best of the Best” is given in 12 segments on top of winners in each category where exterior and interior design, as well as brand value and car accessories are all considered.

“We are all exceedingly proud that Kia Motors has done so well in this new competition, which is very important within the automotive industry. By changing our basic design focus, we have given our brand a face, a distinctive identity,” Peter Schreyer, Kia’s chief designer said.

“The outstanding performance at the inaugural design contest comes as Kia strives to renew its brand image as modern, creative carmaker with artful conception. After launching Soul, K5 and K7 2008 onwards, its revenue jumped from 16 trillion won-level ($15.2 billion) to over 23 trillion won last year. Its operating profit swung back to black in the same period, to 1.7 trillion won as of the end of 2010.

Schreyer attributes the success partly to the famous Tiger Nose grille look applied on almost every Kia vehicle now.

“Design is an extremely important factor. There’s something even more important than that, which is brand. It is brand that makes Kia drivers proud which is an important sales point,” the design chief was quoted as saying. The awards add to the recognition the company won last year including the Red Dot Design Award, the International Forum Design Award, and the 2010 Good Design Awards.

The former chief of design from Volkswagen and Audi in 2007 introduced a common front shape with the Tiger Nose grille, which is now featured on almost all its cars including the Optima, the new Sorento sport-utility vehicle, the Soul crossover, and the Forte compact.

Schreyer predicts Kia’s bid to improve design will help close the gap with its European competitors in the long run.

“Taking one of the world’s top five positions within a single generation in the auto industry is already an impressive result. But design or brand power did not contribute much to the success. We are hoping to create brand values as competitive as that of our European rivals,” he said.

By Cynthia J. Kim (cynthiak@heraldcorp.com)