Kia’s global sales in May 2022 have witnessed a 4.9 percent drop. Although the company didn’t cite any particular reason, reports say that the ongoing supply chain hiccups, raw material crisis, energy troubles, and general economic unrest could have resulted in the plunge.
Kia sold 234,554 units globally last month, recording a Month over Month (MoM) decline of 4.9 percent in sales, with Sportage remaining its best-selling automobile across the globe. It claimed to have held its ground in new markets despite turbulent economic conditions, whereas in larger markets, it faced a slight dip in sales.
Reports highlight that Kia is investing its resources in electric vehicle (EV) development in large markets such as Europe, Canada, the USA, Britain, etc. However, due to limited charging infrastructure, rising prices of lithium, cobalt, and hence those of EVs, people still prefer hybrid electric vehicles (HEVs) or internal combustion engine (ICE) vehicles.
Analysts believe that EV production and their demand are progressing much quicker than the development of charging infrastructure. Therefore, all automakers including Kia — with a proclivity to capture the EV market – are facing slow demand in major markets.
