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  • June 19th, 2024

Journey of KIA Motors Towards Success

Kia Motors was introduced in the Indian market in July 2019 and within a short time, it has captured the Indian market. While everything was nearly stopped and there was a lockdown due to the Covid 19 pandemic, the company was then selling its cars in the nation smoothly. It is considered to be the fastest car seller in the nation as it managed to sell one lakh units within the last 11 months from the time it came into the Indian market. 

But do you know while other car producers were toiling to become successful at that time how did Kia Motors become successful? Let’s learn this. 

A Short Overview of the History of Kia Motors

Kia Motor Corporation or KIA started its journey in 1944. This is a South Korean auto manufacturer. The headquarters of Kia Motors is located in Seoul. They are considered to be the second-largest producer. Hyundai Motor Corporation holds the first position. They sold 3.3 Mn cars all over the world in 2015. That is why Hyundai partially purchased Kia Motors. In exchange, Kia obtained minority ownership of 20 subsidiaries from Hyundai. 

Kia Motors then extended its business in the United States in 1992 and it applied a traditional strategy. They entered one area at a time. This is what they exactly did in India too. They managed to get over 100 dealerships within 1995 situated in 30 states in the United States. 

But unfortunately, they encountered monetary problems in 1997 for which they became bankrupt. They collaborated with Hyundai again in the United States and this time Hyundai grabbed a 51% share of Kia Motors. Kia Motors got 22 subsidiaries of Hyundai again in exchange. Kia managed to achieve great PR in 2014 the company was praised by Pope Francis while he was riding in their Kia Soul which is a compact car. It is said that Kia Motors was able to grab more attention in comparison with their Hyundai counterpart compact. 

Now the company produces sedans, SUVs, minivans, and hybrid automobiles. Kia Forte is the best-selling car of Kia Motors.

SWOT Analysis of Kia

With the help of Kia SWOT analysis, you will be able to learn how a well-structured firm grows with the help of its opportunities. It will show you how the company uses its strengths for utilizing opportunities and at the same time improve its weaknesses. You will also be able to learn about the expansion programs of the company with the help of Kia’s SWOT analysis. 

Here is a detailed note on his SWOT analysis: 

Strengths of Kia

Let’s first learn the strengths of Kia Motors from its SWOT analysis: 

Product Portfolio:

The company has a wide entity image with different suggestions like sedans, coupes, sports cars, passenger cars, SUVs, and crossovers. A few brands of them are Optima, Forte, Sedona, Cadenza, Sorento, and Niro.

 Brand Value:

People all over the world love Kia. The brand value of the company is nearly $6.7 billion which has risen by 6/7% from the previous years. The brands of the firm have also secured their place among the top 50 car brands all over the world. 


Kia has taken its cars to a position that can give users an outstanding driving experience that is beyond their expectations. Their vehicles are also unique in respect of style and accomplishment. 

 Hybrid Cars:

The company has launched the hybrid models of their cars Cadenza and Optima which are very popular brands all over the world. The regenerative braking systems and EV drive mode are the two factors that differentiate them. 


The company has not only shown its creativity in the design and styling of its vehicles but also has conducted a lot of studies on alternative energy automobile prospects like hybrid cars, hydrogen cell power-powered electric cars and plug-in hybrids.

Loyal Suppliers: 

The company has a power ground of loyal suppliers of raw materials. In this way, the company becomes able to win over any supply chain blockages. 

Weaknesses of Kia

The weaknesses of Kia Motors are as follows: 

Rental Charges:

The estate Kia Motors uses the maximum portion of it is taken on rent and the company has to pay the rental charges. 


The company spends low amounts on investigation and expansion in comparison with the contest. 

Employee Turnover Rate: 

The employee turnover rate of the company is very high along with inadequate employee confidence and working spirit. 

Liquidity Issues:

The company has liquidity issues along with a low quick proportion. The status of current acquisitions is lower than the current liabilities. The company also faces cash flow issues. 

 Diversification in the Workforce:

The primary workforce of the company is local And only a little amount of the empires are from other countries. The workers of various countries fail to adjust to the workplace due to a lack of diversification and hence it leads to a loss of skill. 

 Legal Experience: 

The company lacks lean knowledge and the legal office staff are not highly qualified. 

Opportunities for Kia

There are several opportunities for Kia. Some of them are as follows: 


We all know that people all over the world are now using the internet. That is why Kia Motors got a nice opportunity to expand its business online. It was able to use the internet for interacting with customers. 


The E-commerce industry is now in high demand and it may increase sales. That is why a huge number of people are now investing online. If Kia Motors opens online stores and starts to sell vehicles then it will be able to earn a lot of money. 

 Social Media: 

The number of social media users is rapidly growing all over the world. With the help of social media platforms, Kia Motors may spread its automobiles, connect with the buyers and get feedback from them. 

The company has now become one of the most searched phrases on Google. Do you know that the maximum percentage of sales comes to Kia Motors from Google? This has been possible only because the coolant is continuously striving its best to improve its digital marketing techniques like WordPress website content, SEO, social media marketing, e-commerce, and online reputation. 

Technological Developments: 

Technological developments help a company to grow. The company may automate its operations to cut down costs. With the help of technology, a company may get better data from consumers and develop business achievements. 

Disposable Income: 

The income of most families has now increased and people are now spending their money on buying consumer goods. That is why the target market of the company has grown and a lot of new consumers are getting attracted to the company. 


The population is growing rapidly day by day. And it is predicted that the rate of population will keep growing in the upcoming years too. This will be a great opportunity for Kia Motors as it will be able to grow the number of its target customers. 

Threats to Kia

Technological Developments by Opponents: 

It is a threat to Kia Motors when the other opponents make new technological developments within the industry. The new technology grabs the attention of the customers and the all-around market share of Kia Motors then cuts down. 


The suppliers are now bargaining and the number of suppliers has decreased over the years. This implies that the input costs may grow for Kia Motors. 

New Entrants:

A lot of players have come into the market and are not acquiring market share by buying the market share of the prevailing company. This is threatening for Kia Motors as the company may lose its customers due to the new entrants. 

Growing Competition: 

The competition has now increased within the industry for which the rates are becoming low. For this reason, the revenue of Kia Motors may reduce in case it adapts the price variations. 

Exchange Rate: 

The exchange rate varies and this may have a great effect on a company like Kia Motors which sells its products all over the world while the suppliers of the company are local. 

Marketing Strategy of Kia Motors 

The company uses digital platforms to expand its reach. For advertising Seltis the company hired Tiger Shroff, an aspiring actor. It was a perfect pick as most of the audience had a direct relationship with the ambassador and aided them out. 

Seltos became so successful that it worked as a springboard for the next luxury multipurpose vehicle Carnival of the company, the debut of which took place at Auto Expo 2020. there was a record number of pre-orders. Kia Motors sold 15,644 units in the first months after the inauguration. They became the third largest auto manufacturer in February 2020 and their market share was 6.24%. They easily beat Tata Motors as well as Mahindra & Mahindra. The auto slowdown did not affect the sales of Kia Motors like other companies. 

Pestle Analysis of KIA Motors 

Here is a detailed pestle analysis of Kia Motors: 

Political factors

Political problems greatly affect the long-term viability and profitability of Kia Motors. The political environment of a nation contains political stability, taxation, changing policies, trade limitations, and intellectual property protection. Kia Motors has to consider all these political issues very seriously. 

Economic factors

Economic elements like foreign exchange/interest rates, labor market conditions, inflation, and saving rates, among others, are important for the company to comprehend as they affect the entire financial atmosphere of the nation. By having a detailed knowledge of the financial atmosphere the can anticipate the development trajectory of the industry. 

Social factors

Cultural norms, trends, and values set a great effect on organizational culture. With the help of PESTEL analysis, the company may create perfect marketing strategies and meet business goals by acknowledging demographic trends, consumer purchasing habits, power structures, and general values. Kia Motors will be able to use the collected information in its marketing department. 

Technological factors

The company may develop by thoroughly assessing the technical atmosphere. It is very important to grab technology trends to attain particular financial benefits like increased profitability, increased innovation, and reduced costs. For this, the operations can be developed. 

Environmental factors

There are a lot of environmental issues that affect the growth of the company and the company follows the laws to avoid further harm. There are various environmental rules and regulations in various markets. The foreign presence of the company helps it to avoid unfavourable conditions. It is very important to investigate the environment before entering a new market or launching a new product line. 

Legal factors

The company has to investigate the legal market of the nation before entering the market to make sure that they are not doing anything against the law of the nation. The company has to understand the regulatory structure of the nation they are going to do business. otherwise, it will create issues. 


The company started to face financial issues as soon as it chose to expand its business from the Korean market to the market all over the world. Though the products were available at reasonable prices, it was unable to reach the identical standards of other firms. They did not focus on quality. There was a less developed industrial segment in Korea and they expected high prices from the global consumers which led to bankruptcy. Being a parent company, Hyundai invested a lot to develop Kia as a brand and tried to develop the quality of the automobiles too. 

They use TQM strategies to develop their image and make it reliable. They started to produce high-quality products and train professionals to develop and meet customer requirements. TQM is very beneficial for the company. This is used in various fields like customer care, regulations, employee training, and data privacy policies. But to implement all these policies a lot of money was required which is one of the biggest shortcomings that has been reduced due to the subsequent profitability. The compact has become one of the most important brands in the world from a struggling car maker only because of total quality management or TQM. At present the company has a reliable consumer base, continuous market development, high competition, and sufficient income. So, in that respect, we can say that now Kia Motors is a successful company. This has only been possible due to TQM. To make your case study paper more attractive you may get in touch with My Assignment Writing Help


  1. What challenges are encountered by Kia Motors in India?

Kia Motors encountered a few challenges like other auto companies in India. Some of the challenges are powers-performing opponents at the top, industry-wide supply chain imitations, and the battle to maintain consumer loyalty.

  1. What happened to Kia Motors?

Kia Motors announced that it has become bankrupt in 1997 at the time of the Asia economic issues. Then the company signed a deal with Hyundai Motor Company in 1998 to diversify by changing ownership between the two firms. 

  1. Why is Kia so prosperous?

A company becomes strong with the help of a good product design. Kia Motors becomes successful with the help of its outstanding design ideas for automobiles. The vehicles of Kia are not only stylish but also practical. 

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