Azernews.Az

By Bloomberg

Kia Motors Corp. said it will offer more sport utility vehicle models and boost incentive spending in China to revive flagging sales in its biggest market.

The carmaker will add two new SUV models in China by 2017, doubling its offerings in the fast-growing vehicle segment, Chief Financial Officer Han Chun Soo said on a post-earnings conference call Friday. The Seoul-based company will also add new dealers to increase sales in western China, he said.

The steps come as the automaker reported profit slumped 27 percent after deliveries in China declined. Hyundai Motor Co., which owns 34 percent in Kia, has also said it will take similar measures to spur sales there. Foreign carmakers have been struggling in the world’s largest auto market, which is headed for the slowest expansion in four years as economic growth moderates and cities cap vehicle registrations.

Earlier this month, Hyundai and Kia’s Chairman Chung Mong Koo said Greece’s potential exit from the euro, falling interest rates in the U.S., and stagnant economic growth in China are expected for the remainder of the year. Emerging economies are also likely to suffer, with the yen and euro weakening even further, he said.

Shares of Kia declined 0.8 percent to 41,950 won as of 12:37 p.m. in Seoul trading. The benchmark Kospi index fell 1 percent.