Kia Motors Corp., South Korea's second-largest carmaker, said Tuesday it will add a new SUV to its lineup next month to boost sales.
Kia Motors has developed the Stonic subcompact SUV as part of its efforts to absorb growing demand for SUVs at home and abroad amid a global economic recovery and low oil prices.
"The B-segment SUV market has grown fast in the past five years since 2013 to 110,000 units in South Korea. The Stonic is to attract customers in their 20s and 30s who put price and fuel efficiency first," Kia Domestic Marketing Director Seo Bo-won said in a press conference.
In Western Europe, where demand for small SUVs is high, 1.1 million subcompact SUVs were sold last year, accounting for 7 percent of overall vehicle sales, the company said.
Kia Motors` Stonic subcompact SUV. (Yonhap)
"By volume, the B-segment is expected to overtake the crossover SUV segment by 2020, when more than 1 in 10 new cars sold in Europe will be cars like the Stonic," Michael Cole, chief operating officer of Kia Motors Europe, said last week.
The Stonic mated with a 1.6-liter diesel engine and a seven-speed double-clutch transmission will go on sale in the domestic market July 13, Kia said in a statement.
"We are considering launching the gasoline-powered Stonic in the domestic market as well. But no decision has been made yet," the marketing director said, adding Stonics powered by gasoline or diesel will be available in Europe when it is launched there in the third quarter.
The Stonic has a fuel economy rated at 16.7 kilometers per liter and is equipped with six air bags. It is priced at 19-23 million won ($16,700-$22,600), it said.
Kia's current SUV lineup is composed of the Mohave, Sorento, Sportage and Niro. The carmaker also produces the popular K5, sold as the Optima in the United States, along with the K3, K7 and K9 sedans and the Soul multi-purpose vehicle.
Early this month, Hyundai Motor Co., Kia's larger sister company, unveiled its first subcompact SUV Kona to bolster its SUV lineup. Hyundai owns a 34 percent stake in Kia. The two together form the world's fifth-largest carmaker by sales. (Yonhap)
