Why did the Kia 4S store withdraw?
3 Answers
4S internal shareholders no longer inject capital into the 4S store, and there is no working capital support, so it went bankrupt. The following is an introduction to Kia Motors related content: Kia Motors: Kia, namely Kia Motors Group, is a Sino-foreign joint venture integrating automobile production and sales, established in December 1944, with its headquarters located in Seoul, South Korea. Business scope: automobile sales service, the logo of Kia Motors consists of a bright red ellipse, a white background, and the red KIA lettering. Kia's models include Forte Cerato (Forte), Cadenza K7 (Cadenza), Sorento (Sorento), Sportage (Sportage), and Sportage R (Sportage R).
I think the withdrawal of Kia 4S stores is quite common. I've changed cars several times myself and seen many factors at play. First, the market competition is too fierce. With the rise of domestic brands like BYD and Geely, Kia's sales volume isn't increasing, and profits are being severely squeezed. Second, operating costs are too high. 4S stores have to pay hefty rents and labor costs, and if they can't sell enough, they can only lose money and close down. Furthermore, consumer trends are changing significantly, with many people leaning more towards new energy vehicles. Kia has been slow to start in the electric vehicle sector, which has weakened its appeal considerably. Additionally, supply chain issues have added to the chaos, like when chip shortages made it hard to manufacture cars, leaving dealers with insufficient inventory and making it even harder to sustain business. Overall, this wave of withdrawal is a product of market saturation and brand adjustment, and buyers need to look more at other reliable dealers.
I've followed the automotive industry for years. The withdrawal of Kia 4S dealerships can be analyzed from sales and strategic perspectives. In terms of sales, Kia's performance in the Chinese market declined last year, with low frequency of new model launches and severe customer attrition, leading to tightened rebate policies for dealers. Naturally, they can't make money and have to close shop. Strategically, Kia may be shifting to concentrate resources on opening stores in core cities, reducing coverage in smaller areas, reflecting their accelerated internal consolidation and optimization. There are also external policy factors, as environmental regulations become stricter, automakers must transition to electrification, but Kia's layout was somewhat late, failing to keep up with the major trend. This topic is widely discussed among car enthusiasts, indicating the brand's influence is fading. In the future, choosing car brands with faster updates will be essential.
