SEOUL: Kia Motors , South Korea's No.2 automaker, said on Tuesday that it had no plans to build new plants in South Korea or overseas and would focus instead on product quality, despite concerns its limited production capacity may slow sales growth.
"Quantitative growth is important, but qualitative growth is also important. We plan to focus on improving product quality and our brand," Lee Sam-ung, co-CEO of Kia Motors, said at a launch event for its revamped Rio subcompact in South Korea.
"Global auto demand is expected to deteriorate, but we will launch new models, strengthen local promotions and enhance brand competitiveness to cope."
Lee also said the automaker would "try its utmost" to achieve its 2011 sales target of 2.5 million vehicles despite a troubled global economy, adding that it had not yet fixed next year's sales goal.
Kia and affiliate Hyundai Motors , are expected to continue to post strong sales this year despite the uncertain economic outlook, but their stretched production capacity has failed to keep up with demand.
A Hyundai Motor executive told Reuters early this month that it also had no plans for new plants.
Kia Motors also said that it aimed to sell 260,000 units of its new Rio subcompact next year globally, up from 110,000 this year, to expand its presence in the small-car segment.
The domestic launch of the Rio, which competes with Hyundai Motor's Accent and General Motors' Aveo, follows its rollout in the United States and Europe.
The Rio was Kia's No.3 vehicle in terms of sales last year with global sales reaching 224,942 units.
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