The new Kia Rio is a vital car for Kia. The South Korean manufacturer has massive growth ambitions in the UK – 5% market share or 100,000 units by 2010. This year it might, with a fair wind nudge 50,000.
It’s also just signed Reg Vardy, Pendragon and Arnold Clark, the three biggest retail groups in the UK. And they’ll be wanting their money’s worth.
Kia has just set its brand slogan (or rather, parent Hyundai set the slogan) as ‘the power to suprise’, which is aimed at embodying its “exciting and enabling” brand values. Does the Rio conform to these principles, and can it make an impact?
It’s in a segment of the market that is fiercely competitive, one in which Ford, Vauxhall, Peugeot, Renault, Citroen and Fiat dominate. And there’s no shortage of value brands, with Chevrolet, Diahatsu and Suzuki prominent. But one thing is immediately transparent: the new Kia Rio has been designed for European tastes.
Every aspect, from aesthetics and ride to looks, residual value and even the fine-tuning of the dealer network, has been scrutinised to prepare the car for Europe.
Kia indentified four key requirements for success in the B-sector. Its research revealed customers wanted low cost of ownership, high equipment levels, a ‘modern’ package and protection from big, unplanned bills. The issue of low running costs was further broken down into the sub-sections of engine size, fuel economy, road tax, insurance and servicing costs. The car definately fulfils the ‘enabling’ brand value.
Paul Williams, managing director of Kia Motors UK, says: “We are hugely committed to bringing down the cost of ownership, while providing excellent standard specification and comprehensive warranties.” By keeping a close eye on the relationship between the sticker price and the transaction price, Williams claims the new Rio can achieve strong residual values and sustainable growth. “Where not about the numbers,” he says. “The standard of representation for the brand has to be there. We have worked extremely hard to reposition the brand and improve the dealer network.”
The all new Kia Rio goes on sale in October with a choice of two engines (1.5-litre diesel, 1.4-litre petrol) and will be backed by a national marketing campaign in January. Next year Kia expects the new Rio to take 2.0% of the B-sector market, equivalent to 15,000 units. Good looking, well equipped, and likely to be priced around £8,000, its a compelling package.
Add in the Kia three-year, unlimited mileage warranty, plus pan-European roadside assistance and the Rio is set to become a key weapon towards Kia’s growth ambitions.