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Kia’s challenge to maintain its growth in Mexico

The primary Kia dealerships have been constructed underneath the ‘Crimson Dice’ idea, which is characterised by vast fronts greater than 100 meters lengthy, heights higher than 9 meters and a glass façade to give automobiles visibility and permit the entry of pure mild. So the purpose was to promote and many of the area was used to construct the present ground. However few meters have been left for the upkeep and repairs space.

“Our preliminary marketing strategy, with which we developed the seller community, didn’t contemplate the quantity of gross sales we’ve got had,” mentioned Horacio Chávez, CEO of Kia Mexico.

The South Korean model arrived in the nation in mid-2015 with the purpose of conquering 5% of the market, however in this era it achieved nearly 8%. In Mexico, there are already round 400,000 Kia automobiles on the highway and, to maintain the seven-year powertrain guarantee, their house owners have to go to licensed workshops to carry out routine upkeep.

To manage, the meeting firm is already working, in conjunction with its distributors, to develop the areas for repairs and providers.

“The community is at 80% of its put in capability, that’s, we nonetheless have area to obtain all our prospects. Nevertheless, in some particular conditions, we want to begin increasing for the next years, ”says Chávez.

After a evaluate made to the community in 2018, to consider the infrastructure for after-sales service, 47 growth initiatives have been developed that ought to be accomplished this yr, both to construct laminating and portray workshops, or to add extra bays and ramps to streamline the reception and supply of the models. In some instances, concessionaires would have to purchase adjoining land, in others they might have to construct second or third flooring.

“Final yr we virtually stopped all growth initiatives and we’re restarting them this yr,” says Chávez.

Inside the Buyer Satisfaction Index for Service in Mexico 2020, printed by the consulting agency JD Energy Mexico, Kia seems because the fourth model to supply the most effective expertise throughout after-sales service.

“We’re going to work to get to the highest three positions. As well as to the growth initiatives, in Could of final yr we created a brand new buyer expertise division to reinforce the after-sales half, ”says Chávez.

Kia’s present concern in regards to the aftermarket is due to the truth that, in the next years, the buyback will likely be key to sustaining constructive inertia in these first 5 years. Getting these prospects who purchased a Kia 4 or 5 years in the past to return to renew their mannequin for one more of the model will likely be key to staying in the highest 5 gross sales positions in the next years.

Numerous research present that prospects return to a model not due to the ‘good first purchasing expertise’ that they had 5 or extra years in the past, however due to the following experiences that they had on the dealership when performing routine providers or repairs to your automobiles. “That is the closest reference that any consumer has of a model,” says Brais Álvarez, account supervisor at JD Energy de México.

This yr, the South Korean model hopes to get a much bigger slice of the market, of 9%, in contrast to 7.8% reached in 2020. And, in addition to the product providing and financing, after-sales service will likely be key to attaining this.

About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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