Kia expects sales boost from new schemes

MANILA, Philippines — Kia Philippines expects the low down payment and financing schemes now available for its vehicle offerings to boost sales as it hopes to hit its goal of selling 10,000 units this year. 

Kia Philippines president Manny Aligada told reporters the company is hoping the low down payment and financing schemes rolled out for its vehicles last month would help drive higher sales. 

He said Kia’s sub-compact hatchback Picanto was previously not accepted by banks for financing, while the brand’s other vehicle offerings were required to have higher than usual down payment of around 40 percent compared to 20 percent for the rest of the market.

“Before, for a long time, they (banks) could not put a real value to the vehicles. They could not provide good experience. Bank experiences were not favorable and that’s the reason why financing was not equal to other vehicles,” he said. 

He said the company made an effort to reach out to the banks to convey its commitment to support and promote the brand by providing good offers, as well as after-sales service. 

Following the company’s effort to reach out to different banks, it now has partnerships with Bank of the Philippine Islands, BDO Unibank Inc., East West Banking Corp., Rizal Commercial Banking Corp., and Philippine National Bank for financing schemes for Kia vehicles. 

“You don’t get a down payment right, you will not be in the game. So, which is why today, we have that competitive advantage,” Aligada said. 

While other automotive brands are also offering low down payment for their vehicles, he said Kia Philippines is not going to compete by offering its vehicles at the P5,000 level down payment. 

“We’re not going there because we think there is a value to the vehicles we carry. Therefore, at the down payment we are working on now, not at that level (P5,000 down payment),  we think we will attract the appropriate market segment and the appropriate customers,” he said.

Since the launch of the low down payment program, Kia has seen an increase in inquires for its vehicles. 

Kia’s Soluto sedan, which is expected to account for half of the firm’s total sales this year, is currently being offered at a low down payment of P13,000.

Aligada said about half of Kia Philippines’ vehicle sales, which reached a little over 2,000 as of May, are Solutos. 

Given the low down payment and financing scheme, as well as the Chamber of Automotive Manufacturers of the Philippines Inc.’s expectations of improving economic conditions, Kia Philippines is maintaining its target of selling 10,000 units this year after sales reached 2,200 units last year.

Apart from the Soluto and Picanto, Kia Philippines, which was relaunched as part of Ayala Group’s automotive portfolio in January, is selling other vehicles such as the Stinger sports sedan, Forte sedan, Rio sub-compact hatchback, Sportage and Sorento sports utility vehicles (SUVs), Grand Carnival multi-purpose vehicle, as well as the K2500 commercial vehicle. 

Aligada said Kia Philippines is finalizing plans to launch a new vehicle model towards the end of the year.

“We think it will be a popular vehicle that we will enter, bring into the market…Smaller than a regular SUV,” he said.