Kia Motors to go upmarket with K9 launch in May

Thursday, 5 April 2012 00:00 - - {{hitsCtrl.values.hits}}

SEOUL (Reuters) - Kia Motors will launch its first rear-wheel drive luxury sedan in early May in South Korea, as it seeks to go upmarket and challenge sibling Hyundai Motor’s Genesis and imported cars such as BMW’s 7 Series. The K9 sedan is built on the same platform as Hyundai’s Equus and uses the 3.3-liter and 3.8-liter engines that power Hyundai’s Genesis.

“Kia has lacked a luxury car line-up. The K9 launch will help raise average sales prices of Kia cars in the domestic market and narrow the gap with Hyundai,” Lee Sang-hyun, an analyst at NH Investment & Securities, said.

Kia’s K series mid-sized and large-sedans, called Optima and Cadenza overseas, weakened sales growth of Sonata and Azera, key flagship models of Hyundai, Kia’s sister company. The pricing of K9 has not been decided yet, Kia’s domestic marketing chief said. Genesis sells for between 42.1 million won ($37,100) and 61.5 million won.

K9 will pose a threat to Hyundai’s high-end models especially in the captive home market that supports the carmaker’s growth overseas.

Hyundai’s Genesis and Equus account for 5 percent of Hyundai domestic sales, but they have higher margins and are significant for Hyundai’s attempt to grow beyond its image as a maker of value-for-money cars.

“We are entering new terrain for Kia - a big luxury segment. This is a really a big step for Kia,” the company’s chief design officer Peter Schreyer told a media briefing.