We interviewed the general manager of Kia in Spain, who told us how the pandemic is influencing the sector in Spain and the prospects of the brand and the sector in general for the next year.
How is Kia facing the crisis of the pandemic in Spain?
Dealers are betting on digital sales, which is not the same as online sales, to facilitate the purchasing process, with major promotional campaigns that will allow us to save the year with a lower drop than the global market and close with about 45,000 units.
Does Kia bet then for the online sale?
We have not yet fully developed this route, among other things because European legislation does not allow manufacturers to sell directly to customers. You can do almost the entire process online, but not completely.
How has the market been influenced in general and in the case of Kia in particular by the delay in government aid plans?
For the whole sector it has been a disappointment how the implementation of the aid plans has developed. It was announced with great fanfare on 16 June that the aid plans were going to be implemented and the Renove platform was still not up and running four months later. But the most regrettable thing was the implementation of the Moves Plan. We already told the administration that it could not be put at the expense of the Autonomous Communities, that the funds distributed according to the population could not be put into place. This has led to two terrible consequences. One, the absolute abandonment of the functions of the Autonomous Communities, which by mid-September nine of them had not yet implemented the plan. The second, the distribution by population, means that Madrid, which has 50% of the sales of electricity, has only received 15% of the funds, which ran out in barely two weeks.
Will the funds that some Autonomous Communities stop using be able to be used by others that have exhausted theirs?
It is not yet established, we have requested it but for the moment there is no possibility of transferring it.
Is there more help missing from the electric car?
I believe that the aid launched by the government in June is adequate, but it must be consistent over time and of course be adequately funded. But above all, there is a lack of recharging infrastructure on intercity roads. And to make the electric car more accessible, a 0% VAT would help a lot.
Will the dealers be able to overcome this crisis, or are they expected to close down?
We are very happy with how our dealers have dealt with the crisis. They haven't given up on the year and have been able to recover profitability, without reaching the good figures of 2019, but they have ended the year with a 1.5% profitability.
Are you going to be able to comply with the limits on emissions levels?
Yes, of course. Emission levels are an unavoidable objective. The regulator has imposed maximum emissions levels and we are not prepared to pay the millions of dollars in fines for not doing so.
How will the foreseeable increase in registration tax with the new WLTP regulations affect Kia?
There is a recommendation from the European Union not to tax consumers because of the WLTP issue. France and Portugal have raised the emission levels by 20% in order not to do so. In Spain we are going to see if that happens. From ANFAC we have asked the government to do so, and we will see if they finally listen to us, but given the need for the government to rinse out the deficit, I don't know if it will be possible.
Is Kia's client betting on renting?
We don't go up as much as the market because we have other models of financing as well, but renting to individuals is not for the moment our business.
How has Kia changed in Spain in the last ten years?
Before, we sold mainly at price. We have improved our product range a lot and now we sell design and quality. But above all the dealer network has changed a lot, in image and in quality of service. The customer has become faithful to our slogan and we have brought our cars to them so that they know them first hand.
Mobility is changing due to covid-19, from public transport to more individual transport. How can this affect the vehicle fleet?
In principle, studies from China indicate that private transport has increased in the wake of the pandemic. Here it has not been noticed much yet, but it is expected to increase in the coming months.
