Kia Motors suffers 38.9 pct plunge in January sales in China
SEOUL, Feb. 5 (Yonhap) -- Kia Motors Corp., South Korea's second-largest carmaker, saw its sales in China last month plunge 38.9 percent on month, amid a dispute with some of its Chinese dealers over inventory, according to company and industry sources on Sunday.
Kia's sales fell to 30,080 units in January in China, from 49,259 units in December last year.
Industry sources suggested that Kia may seek to reduce its unsold cars before it begins selling new models.
The sharp decline in China sales came as some Chinese dealers reportedly asked Kia to pay compensation due to losses that stemmed from the unsold cars.
Yoo Ji-woong, an analyst at eBest Investment & Securities, said in a report that Kia's sales in China were partly hit by a decline in production as Chinese dealers demanded the company pay compensation.
This year, the growth in the Chinese auto market is expected to slow to 4.4 percent as the Chinese government ended tax benefits for new car purchases.
Kia targets a 7.7-percent rise in sales this year in China.

This photo shows Kia Motors Corp.'s KX7 sport-utility vehicle. (Photo courtesy of Kia Motors) (Yonhap)
(END)
-
Top court upholds life sentence for woman over drowning death of husband for insurance money
-
Late wife of Australian veteran of Korean War laid to rest in Busan
-
Remains of another Korean War soldier identified
-
(LEAD) Fighter jet crashes in Seosan; pilot makes emergency escape
-
Fighter jet crashes in Seosan; pilot makes emergency escape
-
Top court upholds life sentence for woman over drowning death of husband for insurance money
-
Late wife of Australian veteran of Korean War laid to rest in Busan
-
24 teachers caught illegally selling exam questions to private educators
-
Remains of another Korean War soldier identified
-
(LEAD) Fighter jet crashes in Seosan; pilot makes emergency escape
-
All BTS members renew contract with BigHit
-
Presidential office to discuss with China on Xi's possible visit to S. Korea
-
(LEAD) Family of 5 found dead in 3 separate locations
-
S. Korea, U.S. stage joint naval drills in East Sea amid N.K. threats
-
Russian FM to visit Pyongyang next month as follow-up to Kim-Putin summit