KIA Tops the Electric Vehicle Market in Hungary

KIA continues to lead the electric vehicle market in Hungary this year, with a 12.3% share of the market, that is, with 321 vehicles sold in the first half of the year, but the market is expected to shrink significantly next year.

Norbert Nagy, the South Korean brand's importer in Hungary and president of KIA Hungary, said at a press conference in Budapest on Thursday that the brand is steadily increasing the share of electrified (hybrid, plug-in hybrid, electric) models in its sales. Last year, it was 13%, this year's target is 17%, of which 12%has been reached by August.

According to the president, after 8,800 units sold in 2021, the plan is to register 8,500 vehicles in Hungary this year, of which 6,176 had been registered by August.

Currently, 30% of the brand's customers are private individuals, the rest are fleet sales. Norbert Nagy expects the ratio to shift to 75% of fleet purchases due to the downturn in the car market. KIA has an 8.8% share of private purchases, ranking fourth among brands, and fifth in fleet sales with 7.1%.

Norbert Nagy pointed out that the difficulties facing the automotive industry have also hit KIA, which is currently struggling with long delivery times, in addition to a high number of customer orders, as a result of the manufacturer's parts shortages and deteriorating supply chain. This year's sales will be determined by the pace at which the manufacturer can meet orders and supply importers, he said.

He added that the Hungarian new car market is expected to face a sharp drop in customer demand in the coming months, which could hit dealerships, especially those with lower capitalization, hard.

He believes that after the 115,000 car registrations forecast for 2022, the Hungarian passenger car market could shrink to 70% of this year's level by next year.

KIA has 27 sales points and 30 service points in Hungary. According to the president, the automotive industry and demand will also bring with it a transformation of the dealer network, with dealerships increasingly being replaced by transfer points.