The Innovation of New Car Models in the Automobile Industry

KIA Sportage car is manufactured by KIA Motor Corporation, which is based in Seoul, South Korea. This company is the second largest manufacturer of vehicles after Hyundai Motor Company. The corporation sold approximately 3 million vehicles in a year. KIA Motor Corporation responds to the competition in the automobile industry by developing vehicles that address the needs of its consumer base. Over the last decade, KIA Motors has developed various passenger, commercial, sports utility, and hybrid electric vehicles that are a brand image.

Soul, Stinger, and Forte are some vehicles the company has manufactured in the category of passenger cars. In the category of hybrid electric vehicles, the cooperation has released into the market automobiles such as Niro, and Ray Plug-in hybrid. Some years back, the corporation introduced commercial vehicles such as Bongo, and Granbird in the market and sports utility vehicles such as Sorento, Carens, and Mohave.

The new models of cars have enhanced a great achievement of the corporation in attaining a substantial level of success.

Before the discovery and release of these models of vehicles, the company had already managed to impress the clients by labeling their cars at a lower price. The company released the luxurious K900 car worth $66, 0000 with the goal of burnishing the perception that the cooperation focuses on low-priced automobiles (Kim & Do, 2008). The introduction of these vehicles in the market was to send a message to the customers that the firm was undergoing some transformation. The reform came in with a bang of trendy and luxurious brand models that were eye-catching.

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On this account, the corporation had to increase revenues, but it also succeeded in changing its brand image. Huge sales were recorded in the South Korean market and in other regions where the company had not managed to penetrate. However, in the United States, the consumers were reluctant to adopt the recently released vehicles from KIA Motors due to the perception that the company manufactures low-priced cars with low-reliability ratings (Kim & Do 2008).

Regardless of the challenges in the United States market, the new vehicles manufactured by this corporation have succeeded in boosting its profit margin and nurturing a new brand image. Honda North America Inc and Toyota Motor North America Inc are the main competitors of the Kia Motors. In a bid to compete effectively, these rival companies have also manufactured new vehicle models that best addresses the changing needs of the consumers The Toyota products have not only managed to penetrate the global market, but they have also enabled the company to achieve major sales success. Toyota’s consolidated automobile sales by the end of the last quarter of 2017 totaled 6678279 units, an increase of approximately thirty thousand units in comparison to the same period in 2016 (Sosnovskikh, 2016).

Innovation has been at the forefront of automobile industries such as Mazda, Toyota, and Kia Motors. Rolling out new products has provided benefits to automobile manufacturers with regard to changing the brand image and increasing sales. In this perspective, technological advancement forms the backbone of the vehicle industry. Manufacturing vehicles that can communicate remotely among themselves is a viable idea that can be implemented by the automobile producers.

References

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4. Growth of Indian automobile industry. International Journal of Current Research and Academic Review, 3(2), 110-118. Sosnovskikh, S. (2016).
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