Kia is showing signs of recovery in China, recording more than 20,000 units in monthly sales for three consecutive months from June to August. If this momentum continues, the company is on track to reach or surpass its goal of selling over 200,000 units in China by the end of the year.

Kia’s recovery is primarily driven by two factors: the introduction of new, market-specific models and an expansion of its export operations.

According to Kia’s Chinese joint venture, Jiangsu Yueda Kia, the company sold 22,498 vehicles in August -- marking a 36.2 percent increase compared to the same month last year. This is the highest monthly sales figure so far this year. From January to August, Kia’s total sales in China, including exports, reached 154,243 units, a 61.3 percent rise from the same period in 2023. This surge has positioned Kia as the top-selling brand among joint venture automakers in China.

At the current pace, Kia expects its total sales in China to exceed 230,000 units by the end of the year, a return to the 200,000-unit threshold for the first time since 2020.

A critical factor behind Kia’s success is the introduction of new vehicles tailored to the Chinese market. The company launched the EV5, a mid-size electric sport utility vehicle, for the first time in China in late 2022. This was followed by the release of the new K3, a refreshed version of its mid-size sedan, in 2023. Sales of the EV5 have been promising, with nearly 6,000 units sold between January and July.

Kia has also found success with its updated 2025 K5 sedan, which has been redesigned to be more competitive in the market. The 2025 K5 is priced up to 23,000 yuan (approximately $3,200) less than the previous model, making it more accessible to a broader range of consumers. By offering both high-end and entry-level versions, Kia has enhanced the appeal of the K5, driving higher demand.

Kia’s rebound in China is not solely driven by domestic sales. The company has also capitalized on the growing role of its Yancheng plant as an export base. As of August, the plant had exported more than 300,000 vehicles, helping Kia achieve the highest export volume among joint venture automakers in China.

This export strategy has been key in offsetting fluctuations in domestic demand and strengthening Kia’s market position in China. Jiangsu Yueda Kia is a 50-50 joint venture between Kia and Jiangsu Yueda Group in Yancheng, Jiangsu Province.

The sales boost in China is also positively impacting Jiangsu Yueda Kia’s financial performance. While the joint venture posted an operating loss of 32.3 billion won ($24.12 million) in the first quarter of 2024, this loss was reduced to 27.8 billion won by the end of the second quarter. The company also achieved an operating profit of 4.5 billion won in the second quarter, reflecting a gradual recovery in profitability.

“By sustaining monthly sales of over 20,000 units, Kia has shown it’s on the right path in China. This level of consistency signals that the company is well-positioned to boost profits as its operations continue to strengthen,” said Kim Sung-rae, a market analyst at Hanwha Investment & Securities.