The 22nd Guangzhou International Automobile Exhibition officially opened.
In this auto show, we participated in a group visit to Kia brands to exchange views on Kia brands.
In the interview, Yang Honghai, chief operating officer of Kia China, expressed his views on the “price war” in the past two years.
, 
, the following is a record of the dialogue: media: sales in the first three quarters of this year surpassed that of the whole of last year, and the sales growth rate ranked first in the joint venture brand.
What are the factors behind the sales growth? Yang Honghai: Kia insists on “walking on two legs” in the Chinese market.
one is to pay close attention to the construction of the domestic market, including the transformation of digital marketing, including the cooperation of dealer groups, to stabilize the development of the domestic market.
At the same time, we are actively expanding overseas markets, because Kia is in short supply all over the world, and we have to wait more than half a year for car booking in Canada.
When global supply exceeds demand, we use China’s production capacity to supply the global market.
This year, we expect to achieve the sales of 250000 vehicles at home and abroad.
It can be said that at present, Yueda Kia is the most successful in the transformation of domestic joint ventures, seizing not only the international market but also the domestic market.
Although many joint ventures are laying off staff and closing factories, our factories are now operating at full capacity, the workload of factory workers is saturated and the benefits are very generous.
For example, during the festive season, we will give out benefits such as cash and gifts, such as Korean rice cookers worth more than 1200 yuan, cash card worth 1000 yuan, trade union card, and so on.
By contrast, some other companies may only give out simple gifts.
Our factory in Yancheng is Kia’s leading 4.
0 intelligent chemical plant in the world, and we have recently partnered with Yancheng to rebuild Yancheng port for overseas shipping.
Judging from the sales data, we have sold about 200000 cars from January to October this year, a growth rate of about 54.5%. It can be said that we have gained a firm foothold in the Chinese market.
In the future, we will continue to make efforts in the Chinese market to attract Chinese consumers by introducing new products and upgrading existing products.
For example, the 2025 new versions of EV5 and GT-Line released this morning are the embodiment of our product upgrade.
For example, our EV5 interior may visually give people a texture similar to plastic, but in fact, it is made of environmentally friendly materials.
Maybe Chinese consumers do not have a strong environmental awareness in this respect and will mistakenly think it is plastic.
I have mentioned a documentary “China on the Tip of the tongue”, which can be compared to “the car on the Tip of the tongue”.
In other words, our cars are made of natural materials such as corn, soybeans and sugar cane, as well as recyclable and environmentally friendly materials, which are biodegradable when the vehicle is dismantled, which many other brands cannot do.
Therefore, we are actually contributing to China’s environmental protection cause.
Although the cost will be 30% higher than the market price, we still offer our products to Chinese consumers at a lower market price in China.
In order to meet the needs of Chinese consumers, the interiors that we used to look like plastic but are actually environmentally friendly materials are now further increasing the cost and covering them with whole plant skins.
This means that costs are rising again, but in order to satisfy Chinese consumers’ preference for leather interiors, we have made such changes.
Of course, we can’t provide leather interiors because we don’t think leather is environmentally friendly.
Therefore, we used the “zero benzene plant skin”, this material buried in the soil after a few years can be naturally degraded.
In the confined space of the car, this material is also more friendly to human skin.
Simply put, these products are very safe for children and do not cause respiratory disease, asthma or leukemia.
Because we strictly control the air quality and heavy metal content in the car, achieving zero benzene and very low formaldehyde emissions, far lower than the national standards, or even almost undetectable.
In order to prove this point, my personal car is equipped with two testing instruments: one is the air quality detector, which is suitable for simple air quality testing, and the other is the battery radiometer, which is used to detect the whole vehicle’s battery-free radiation.
The results show that the hazard detection values of EV5 are very low or even non-existent, which can greatly ensure human safety.
In addition, our key system has also been upgraded Some manufacturers are still using NFC key technology, but this technology is a thing of the past for us.
We use the 4.
0 version of the all-digital key system, the function plate is more advanced.
NFC keys, like mobile access cards, are only the most basic features, while our version 4.
0 provides a more comprehensive digital experience.
Welcome to experience our products.
Some domestic enterprises are still boasting that their APP is leading.
In fact, we provide a fully intelligent security system.
Strictly speaking, our system can achieve 100% braking in the range of vehicle speed from 5 km to 80 km.
We will not claim to be the best in a million, nor will we claim to lead or crush luxury brands such as Ferrari and Porsche.
But our technology has been tested by the global market.
In the North American and European markets, we are second only to Tesla in terms of quality, sales and intelligence of electric cars, which is recognized by consumers around the world.
In the Chinese market we have the same advanced technology.
The functional experience shared by our female car owners on stage today also proves this point.
In many cases, vehicle failure occurs at low speed, and our system can stop at low speed, which is very consistent with the characteristics of the Chinese market, because there are complex traffic environments such as bicycles, motor vehicles, and pedestrians.
What we pay attention to is the safety detection at the beginning, such as when the old lady is pushing a stroller to cross the road, our system can detect and respond in time.
Unlike other enterprises that only test high-speed driving, we also pay special attention to the safety performance of low-speed driving.
Just like when selling electric cars, it makes no sense to just tell you the acceleration time of 0-100, because the speed of the motor itself is faster than that of the engine.
What is more important is the high power output capacity for a long time, for example, EV6 can run 260km on the track with high power output in half an hour, but more important is how long it can run at this speed and whether it can maintain high power output for a long time.
This is our technical content and chassis strength, but also according to the characteristics of the Chinese market.
The result of the adjustment at point.
The entire three-power system of EV5, including the battery management system (BMS system), is independently developed by us.
I often joke with my friends that although the batteries of Huawei phones may not be made at home, this does not affect Huawei phones to maintain their brand features and technological advantages.
Similarly, although we use a certain brand of battery, the whole motor, electric control system, including BMS system and cloud temperature control system, are our own technology.
In addition, we have a very strong partner-Mobis.
Mobis is one of the four major parts suppliers in the world.
they have deep attainments in the research and development of engines, hydrogen power and gearboxes, and have close cooperation with well-known brands such as Aixin, and their supply system is also quite perfect.
In the future, we will always adhere to the concept of “in China, for China”, and will continue to invest in the development of exclusive vehicle systems for the Chinese market.
I believe my answer has been quite detailed, covering almost all aspects, and providing some inside information.
Media: this auto show unveiled a new EV5, and then what improvements does this car have compared to the old model? Park Yuhuan: last year, also during the Guangzhou Auto Show, we officially released EV5, an important model for the transformation of Kia motorization.
EV5 has been loved by domestic consumers this year.
Many car owners think that EV5’s three electricity system is very reliable, spacious and changeable, intelligent driving auxiliary safety and practical, is the most cost-effective SUV.
Over the past year, through dialogue and research with the majority of car owners, and combined with the real feedback of car owners, we have not only retained the original advantages of reliable electricity, changeable space, safety intelligence, etc.
, but also focused on the personalization of interior decorations.
the comfort and convenience configuration of travel have been upgraded.
First of all, the interior decoration is upgraded, the blue-gray interior is added, the steering wheel is upgraded to leather package, the multi-function touch button panel is upgraded to matte material, the seat is upgraded to all-plant leather, and the door material is upgraded to plant leather wrap.
The cockpit environment is healthier and the driving experience is more comfortable.
The convenient configuration has also been greatly improved, especially the hidden electric door handle has expanded the scope of application of the model, increased the electric folding of the outer rearview mirror, and integrated elements such as color dynamic atmosphere lights and PM2.
5 sensors on the interior, making travel easier and more scientific and technological.
There is no increase in the price of the 2025 EV5, and in order to reduce the threshold for users to own cars for the long-lasting version, we have also added the 720Light version, which costs only 174800 yuan.
In addition, taking into account the diversified travel needs of users for stronger performance, we also specially launched the GT-LINE version of EV5, the new car uses GT-LINE exclusive exterior interior, standard dual-motor four-wheel drive system, 20-inch aluminum alloy wheels, Harman Catton audio.
We very much look forward to the EV5 pure electric family, which includes the standard version, the long-lasting version and the GT-Line version, to bring more users a high-quality and personalized travel experience.
Media: how will Yueda Kia better carry out user operation in the future? Yang Honghai: we are now focused on B2C business, that is, to establish direct contact with customers.
In the Chinese market, my goal is not to pursue industry rankings, even though we are in the top three in the global market.
We have been focused on serving our potential users, fans and fans, and working hard for our target groups, target customers and fans to live with them and build products together.
Strategically, we have two key points.
First of all, it is very clear that it is directly connected to customers.
Secondly, we are conducting digital marketing.
In the past, because we were not proficient in some marketing tools in the international market, such as the use of APP.
But since last year, we have implemented the APP strategy to move customers from traditional databases to APP operations.
For example, a female car owner who was present today shared her experience on APP, and we thought it was great, so we invited her to come to the scene to interact with us.
Including our ongoing Douyin project, as well as the construction of self-media, are all in order to directly contact customers and share more stories with you.
We focus on telling the true stories of users, dealers and around us, in order to spread the voices of users and make them heard by more people, including our friends, dealers and senior leaders.
This allows us to empathize with our customers, because no one product can 100% meet everyone’s needs.
Our goal is to develop for users who value the strengths and features of our products, such as Korean car appearance design, interior decoration, environmental protection technology and intelligent driving.
Of course, we also respect users who like other brands or features, but our products may not be in line with their positioning.
While meeting the needs of specific people in the market, we are also trying to solve their pain points.
For customer feedback, we have a special quality group for discussion and research.
No matter the feedback on Weibo, Wechat or Douyin, we will take screenshots and send them to the relevant departments, including the quality department, the after-sales department and the production department, who will study the root cause of the problem, which is caused by the production process, or the assembly process, or the lack of dealer service.
We are committed to improving the service quality of these users and ensuring that their needs are met.
Therefore, we are committed to providing quality services to our customers.
Although we can’t avoid all the complaints, we will improve the product based on user feedback and develop the next generation of products.
As a global auto company, we develop for the global market, and make special improvements for the Chinese market.
We attach great importance to the voices of Chinese users and have taken steps to collect them.
For example, the head of the quality department personally went to Guangzhou Auto Show to learn about the situation in order to improve product quality.
At the last Beijing auto show, we also invited more than 2000 Korean engineers to jointly examine the similarities and differences between Chinese and Korean cars and improve them accordingly.
Media: globally, we see not only the Australian Open, Kia has also sponsored some events such as the World Cup, Europa Cup, NBA and so on.
I feel that Kia is quite active in sports.
I would like to know what good brand effect this marketing has for you, and what is the original intention of persisting in sports marketing? Yang Honghai: in fact, Chinese enterprises areIn the process of going out to sea, there are many things to learn from international first-class enterprises in marketing, especially when the world is expanding overseas markets.
Asian companies have encountered difficulties in the process of going out to sea.
For example, Japanese and Korean cars also encountered setbacks when they entered the American market, but they learned a lot of marketing tactics in the process.
Learned how to overcome the cultural background, differences in laws and regulations, as well as disobedience and other problems, so as to win the love of local consumers and become a brand worth buying in their minds, which is also worth learning.
In my opinion, what Kia needs to do in the Chinese market is to provide high-quality products to Chinese consumers and global consumers, create well-being for the entire automobile industry, bring benefits to workers, and promote the development of the entire industrial chain.
together to promote the development of the entire industrial chain and create value for upstream and downstream and industrial workers.
The Australian Open is the same, it is in line with the Olympic spirit, in line with the brand spirit, in line with the universal value of mankind, the spirit of sports events will bring additional items to the brand.
In my past work experience, the enterprises I work for have held some football matches in South America and other places, conveying the spirit of hard work, hard work, overcoming difficulties, and the quality of honesty.
We should also win the market, but we should not use improper and false means, but use good products and good services.
I have always believed that we should look at the development of the automobile industry from a global perspective, rather than being limited to a single market.
Therefore, sports spirit and brand spirit complement each other, they are combined not only in the spiritual level, but also in the dimensions of social value and universal value.
This kind of tight connection makes it easier to get closer to consumers and achieve heart-to-heart connection with the brand.
When a brand gives you a sense of intimacy, such as combining the brand with the Australian Open, the European Cup and the American Super Bowl, and these events are your favorite, will you imperceptibly connect the brand’s products with sports events, and then buy these products? In a deeper sense, this is not only a strategic issue for enterprises to go to sea, but also a topic related to social welfare.
Kia has been actively carrying out social welfare actions in China.
We have sponsored more than 20 million construction of Hope Primary School and raised nearly 120 million yuan in China to carry out public welfare activities and feed the Chinese market.
We always adhere to common progress with the Chinese market and help improve the social welfare of the whole.
This is also a problem that Chinese enterprises have to face when going out to sea, not for profit.
But to better integrate into this community, nation and cultural system.
Media: how to view the price war in the past two years, because it is coming to the end of the year, what is the impact or benefit of Kia in this round of price war? Then what do you think of the shipping rate of new energy this year? how much do you announce? Yang Honghai: price is like a double-edged sword.
I personally think it should not be called a “price war”, but to see whether it can provide consumers with products with low price and good quality but good performance, which depends on the market orientation, including the guidance of public opinion.
From the perspective of the whole market, we hope to build a benign market environment, not Bad money drives out good.
If the market simply pursues low prices, just like the “poisoned milk powder” and “big head baby” incident, consumers will not benefit.
Enterprises that expand through these means will eventually be eliminated by the market, which is disadvantageous to the development of the entire automobile market.
Therefore, the “price war” should be seen in two aspects: on the one hand, we hope to bring a level playing field to China’s automobile market, and what we have to compete with is the layout of the industrial chain, cost control, and how to expand production capacity while improving the welfare of workers, so as to bring benefits to end consumers, industrial workers and the entire industrial chain.
We welcome this kind of “price war” on a fair basis.
On the other hand, if it is a “price war” based on an unfair system, we firmly oppose it.
This can not bring long-term value to consumers, consumers only buy low-quality and low-price products, which is like a substandard product, which contains toxic substances, heavy metals and impurities, but it is difficult for consumers to realize that it will eventually harm the body after use, and the enterprise will close down as a result.
Therefore, Kia always adheres to the long-term strategy, and we will not give up the market or provide consumers with low-quality and low-price products because of short-term sales losses.
Take the price of EV5 as an example, we would rather lose money to meet the preferences of consumers and improve the quality of vehicles.
For example, we choose a more environmentally friendly and healthy plant leather material rather than a plastic material, but if we choose this material, the environmental cost may increase by 30%, but we still choose to do so, even if it increases the cost, because we have to be a conscientious enterprise to further meet the needs of the Chinese market.
At the same time, enhance the competitiveness of brands to form a virtuous circle.
This may bring some short-term losses, but we do not care about this loss.
We do not pursue short-term goals and short-term interests, which will harm the interests of consumers and the entire market and industrial chain.
We pay more attention to long-term market development and consumer satisfaction.
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