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Kia Motors Case Study

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Company Overview

Kia Corporation, or simply Kia, is a multinational automaker based in Seoul, South Korea. With sales of more than 2.8 million vehicles in 2019, it is South Korea's second-largest automaker after parent firm Hyundai Motor Company. Hyundai owns a 33.88 percent stake in the KIA Corporation, worth little over $6 billion, as of December 2015. Kia is a minority shareholder in over twenty Hyundai companies, with stakes ranging from 4.9 percent to 45.37 percent and a total value of over $8.3 billion.

Kia, South Korea's oldest automobile manufacturer was formed in 1944 as a producer of steel tubing and bicycles. Kia was founded in 1952 as Kyungsung Precision Industry and later produced motorbikes, trucks, and automobiles. Kia began producing Mazda-derived automobiles in 1986, in collaboration with Ford, for both domestic and international sales in South Korea. The Pride and Avella, which were offered in North America and Australia as the Ford Festival and Ford Aspire, respectively, were among these models.

Kia Motors has a turnover of 53.1 trillion KRW and manufactures roughly 3.2 lakh vehicles per year. Kia Motors, in collaboration with Hyundai, plans to develop environmentally friendly and technologically advanced automobiles that suit consumer needs while also being environmentally benign. Kia Motors' popular models include the Niro, Quoris, Cadenza, and Sorento, and the company sells crossovers, sedans, SUVs, and sports vehicles. Kia Motors is a well-known name in the car circuit, having sponsored many automotive sports. 

SWOT Analysis


Strengths are described as what a company excels in in its many operations, giving it an advantage over its competitors. Kia Motors has the following advantages:

Product portfolio

Kia Motors offers a diverse range of vehicles in segments such as sedans, coupes, sports cars, passenger cars, SUVs, and crossovers. Optima, Forte, Sedona, Cadenza, Sorento, and Niro are some of their brands.

Brand valuation

Kia is a well-known brand around the world, with a market capitalization of 6.7 billion dollars, up 6.7 percent from the previous year. The company's brands have also consistently been recognized in the top 50 global brands.

Hybrid cars

Kia Motors has introduced a hybrid version of their Cadenza and Optima models, which are both well-known brands around the world. Regenerative braking systems and an electric drive mode distinguish them.


Kia markets its automobiles as vehicles that can deliver driving experiences that go above and beyond customer expectations. In terms of styling and performance, their vehicles are also superior.


Kia Motors has been involved in a lot of research on alternative energy vehicle alternatives such as hybrid automobiles, hydrogen cell powered cars, electric cars, and plug-in hybrids, in addition to being unique in the design and style of their cars. You should check plagiarism of your case study assignment.


Weaknesses refer to parts of the business or brand that need to be improved. The following are some of Kia Motors' major flaws:

Poor reach

In compared to its competitors, Kia Motors has been unable to reach a larger audience, limiting it to smaller and specialist markets.

Poor brand identity

Though a well-known brand in its home market, Kia Motors has struggled to establish a brand identity or a positive image in Europe and the United States, and has been mainly unsuccessful.

Shift of focus

Kia, who previously focused mostly on fleet sales, has attributed their income decline on a drop in demand for fleet vehicles and has decided to rebuild them as a retail car brand. This may not be the best course of action.

Poor promotion

The corporation has been focusing on sponsorships of Formula 1 and other athletic events, and as a result, they have spent the majority of their promotional budget there, making them almost invisible in the retail market.


The term "opportunities" refers to channels in the business's surroundings on which it can capitalize to boost its profits. The following are some of the possibilities:

Potential market size

 According to research, emerging countries will be a big source of revenue for automakers in the future. Demand will be higher in China and India than in the United States or Europe.

Improved infrastructure

Emerging economy governments have made a concerted effort to improve road conditions and increase road safety. Intercity communication has also improved thanks to highways, which has improved long-distance driving possibilities as well.

Changes in trends

The growing number of dual-income households, urban migration, and the presence of more female drivers on the road, among other factors, will all have a favorable impact on automobile sales.

Green cars

Kia Motors has put a lot of money into research into alternative energy vehicle alternatives, a cause that many governments and environmental groups are championing. As demand for hybrid, green, and environmentally friendly cars rises, these initiatives will bear fruit in the near future. This is a fantastic chance for the business. If you are looking for such relevant case study factor then take help from's  professional writers.


Threats are environmental elements that have the potential to stifle a company's growth. The following are some of the threats:

Intense competition

In the market for automobiles, there is a lot of competition. Toyota, Honda, and Nissan are the company's key competitors.

Regulatory framework

 With concerns about global warming and the depletion of fossil fuels, the automotive regulatory system is likely to be tightened, with a focus on quality and environmental compliance. Automakers may incur increased costs as a result of this.

PESTLE Analysis


ü While Kia has had greater success in India and the United States, its sales in China have continued to decline. In comparison to other markets, the political environment and structure of the Chinese market is far more complex. Kia has partnered with a local brand in China to produce and sell Kia vehicles in the country. Despite the fact that China is the world's largest automobile market, Kia has seen a decline in sales and market share there since 2014. In China, it now has only a 1.3 percent market share.

ü Local enterprises are primarily encouraged by the Chinese government and its policies. While local alliances can help enterprises join the market, there are still challenges due to the country's complicated political and fiscal framework. As a result, local vehicle manufacturers have a better chance of succeeding in China than multinational car manufacturers. In India and the United States, Kia Motors' car sales climbed faster than in China.


ü The performance of vehicle brands in worldwide markets is also influenced by economic variables. Car sales are influenced by the amount of economic activity and market confidence in both the global and local markets. The world economy was in good shape before the pandemic, but all of the main markets have taken a hit since then. Even China, the world's largest auto market, was severely impacted. It did, however, rebound faster than the other markets. The United States and numerous European markets were among the other markets where car sales were severely harmed.

ü The pandemic triggered a global recession, with millions of people losing their jobs. Due to rising unemployment rates in key markets such as the United States, China, India, and various European countries, vehicle makers saw a drop in sales as customers avoided making any non-essential purchases. As the global economy recovers from the effects of the epidemic, sales are likely to accelerate in 2021.


ü Innovative models appeal to the millennial generation. It has a highly digitalized lifestyle and seeks automotive types that are easy to integrate into it. This generation's tastes and inclinations are also distinct from those of preceding generations. SUV sales have increased in recent years as a result of the modern generation's increased interest in SUVs.


ü In the twenty-first century, technology has remained the primary driver of progress in the automobile industry. The automobile industry is a very competitive market. Kia Motors competes in the global market against companies such as GM, Toyota, Ford, and others. However, it is Kia's concentration on technical innovation that has allowed it position itself as a brand for the masses and achieves speedier global expansion.

ü The demand for electric vehicles has risen steadily over time. Kia is investing in extending its electric vehicle offering over the next five years in order to meet rising global demand. Aside from that, the corporation is also investing in other technologies, such as self-driving cars.


ü People are increasingly interested in electric and environmentally friendly vehicles, as well as vehicles with minimal emissions. As a result, automakers must now increase their efforts on producing environmentally friendly vehicles (electric cars and hybrids). Governments have enacted strict emission standards, and any infractions can result in financial penalties for automotive manufacturers, including Kia Motors. Kia is constantly striving to improve its position in European markets. The EU, on the other hand, has toughened emission-control measures. Kia, on the other hand, has always concentrated on being a sustainable brand, and in addition to fuel economy innovations, it has also focused on producing low-emission vehicles.


ü There are a number of laws that vehicle players must follow. There is a complex network of laws that vehicle brands must follow, ranging from labor to product quality, passenger safety, and supply chain. Furthermore, these laws can differ from one country to the next and from one market to the next. Companies must develop internal policies and business plans for each market based on the legal framework of the local market and local legislation. All of the major vehicle brands that operate in international markets have established policies requiring their employees and suppliers to follow all local laws.


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