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South Korean car companies continue to break through to high-end operations. Following Beijing Modern's launch of the mid-to-high-end car name map, on December 5th, Dongfeng Yueda Kia’s new K5 officially went public. Surprisingly, the new-generation K5 introduced the 2.0T model equipped with turbocharged technology for the first time, which has not yet matched the eight-generation model of its sister brother Sonata. Su Nanyong, general manager of Dongfeng Yueda Kia Corporation, said in an interview with the media that the 2.0T model was added to meet market demand and provide consumers with more choices.
In the increasingly rational market environment, the brand image becomes more and more important, and the Korean department's motivation for seeking high-end breakthroughs is even more pronounced. As the strategic flagship model of Dongfeng Yueda Kia, K5 not only has to play a role in increasing sales volume, but also is an important task that is entrusted with the promotion of brand image. The importance is self-evident. The restructured K5 has made significant changes in its power configuration and marketing ideas. It is understood that after the arrival of the new K5, its annual sales target will reach 70,000 units, with an average monthly sales of 5,800 units, which is about 10%~15% higher than the current monthly sales level.
Upward weakness in the brand has affected the consumer's perception of the brand to a certain extent. Korean brands that are at the low end of the perception of grades will continue to use price wars to fight back against their rivals, at the expense of discounted profits. Take the K5 as an example. The reporter learned from East China, North China, and Southwest China that the current price reductions for the model's terminals are approximately 30,000 yuan, 30,000 yuan, and 20,000 yuan, respectively. A person from Dongfeng Yueda Kia dealership in the southwest region told reporters that “new car profits are continuously diluted, and when prices are severe, they can only sell cars at a loss.â€
"In an increasingly rational and rational consumer environment, the impact of the brand on sales will continue to grow, and the competition in the automotive market will gradually shift from cost-effective competition to product value competition. This is also the stage of development that Korean brands must undergo." Ye Sheng, director of automotive research at Poussou, told reporters. With the launch of the new K5 and its 2.0T new models, it is worth noting whether Dongfeng Yueda KIA can erode more market share in the mid-to-high-end car market.