HIYA KIA!
	The new Kia 2700 - a well priced good looker that is certain to capture sales.

There's two new contenders in the light commercial vehicle sector - one which should have existing chassis/cab suppliers at the lower end sitting up and taking notice and the other - well, we're not too sure given current trends in the market. Both new entrants are from Korean car and truck manufacturer Kia Motor Corporation, represented in South Africa by Associated Motor Holdings, a division of the Imperial Holdings Group writes Patrick O'Leary.

Do we need another player in the truck market? Many would say no given the fact that South Africa currently boasts one of the most heavily populated arenas in the world in terms of manufacturer representation. However, given the open market principles of a democratic society such as ours, one can't force anyone in, or out - so the Koreans have decided to come in with a one-ton truck designated the Kia 2700 and a panelvan called the Kia Pregio.

In fact, the Koreans are determined to make deep inroads into the market with these products as South Africa forms an integral part of the company's strategic plan to be a world player of note. So let's have a quick look at this new player's intent before looking at the products.

Listen to what Mr CD Lee, Kia Motor Corporation's director for South Africa and the rest of Africa says: "Kia has the aim of becoming one of the top five automotive companies in the world within the next five years and we can only attain this by increasing our exports into the 150 countries in which we operate." Yes, I know we don't usually use 'Mr' in FleetWatch but protocol seems to have it that Mr is the way to go in Korea. In fact, when Mr CK Lee was introduced to the press, I wrote it down as CKD thinking what an apt name for this market. I was wrong - and he certainly has no intention of being Completely Knocked Down. Quite the opposite in fact. Anyway, giving credence to the realisation of its global aim is the fact that in America, sales of Kia products for the period January to June this year were up 40% over the same period last year. "In July this year, we established a new sales record in America with over 20 000 units sold," says Mr Lee, adding that this year, Kia will produce over 1-million vehicles of which two-thirds will be exported. The company has also set up a European operation in Frankfurt, Germany, to service the European markets. And now it's South Africa's turn which Kia views as a vital link in its global chain. Competitors take note of what Mr Lee says:

Handy feature - the front panel opens to enable easy checking of fluid levels. The good looking Kia Pregio. All the right features but is there still a volume market out there? It's thumbs up in terms of great expectations from Mr C K Lee, Kia Motor Corporation's director for South Africa and Africa, and Ray Levin, MD of Kia Motors SA.

"Kia sees South Africa as one of the most exciting and largest growth areas for our export vehicle sales and we are assisting Kia Motors South Africa and its dealer network to fully realise this potential," he says.

South Africa on its own won't fully justify this expectation but where this country does take centre stage is via Kia using it as the springboard into the rest of Africa. This is where one has to admire the long term view adopted by many overseas organisations which tend to look past the 'sell-by date' of obstructionist politicians like Zimbabwe's President Robert Mugabe.

"Yes, we know many African economies are bad at the moment but there is potential in the future. We are already seeing demand increasing in countries like Gabon and Angola and although they may only be one-tenth the size of the South Africa market, they are slowly growing. We are not looking at big volumes into Africa but if we set up our distribution network now, we will be prepared for the future growth we know will come. Our job is to first penetrate the South African market with our commercial vehicles but at the same time, prepare for the future in Africa," says Mr Lee.

Of course, there is also the point of the aftermarket and here Kia is boxing clever. "We recently bought a large warehouse in Dubai from where we are supplying parts into the Middle East and African markets. However, our intention is to set up a parts hub in South Africa from where we will eventually supply parts into sub-saharan Africa.

According to Ray Levin, CEO of Kia Motors South Africa, that day is not far away with approval recently given for the establishment of a new R20-million headquarters for Kia Motors SA which will incorporate a large parts warehouse. At the moment, Kia Motors SA is responsible for the local market as well as Namibia and Zimbabwe. The company also has joint alliances with companies in Botswana and Malawi. The parts hub operation will extend these areas.

Interesting, according to Mr Lee, is that Kia already has some 30 distributors scattered throughout Africa. - so the continent is not new to the Koreans. "We already hold about 7% of the market share in southern Africa," he tells FleetWatch.

Now onto the products and again, let's give a little background. Although Kia, as a commercial vehicle manufacturer, is new to both South Africa and its local distributor which up to now has dealt with Kia car products, trucks are not new to Kia itself. In fact, says Levin, the truck has been the cornerstone of the Kia organisation with the first product emanating from its stable being a K360 3-wheeler truck. Today, it manufacturers from the 1 ton K2700 up to over 20ton GVM models.

"Kia's success has been built on the back of its commercial vehicles many of which were built for the military. So we have a lot of experience in this field," says Mr Lee.

Given this, the new Kia 2700 is, Levin insists, not a bakkie. "It's an entry level 1-ton workhorse which will prove ideal for the a wide variety of both urban and rural situations."

The large load box area of the drop-side (top) will make the KIA 2700 suitable for many small business applications while the comfortable and spacious cab will make it attractive to drivers.

It is also, by the way, the first right hand version of this model to be launched by Kia. The original LHD model was launched in 1995 so South Africa is being used as the launch market for the RHD version. Australia will follow - just like they do when they play rugby against us.

It has a 2,7 litre J2 diesel engine linked to a 5-speed gearbox and attains maximum power of 62 kW at 4 150 rpm while maximum torque of 17,5 Nm kicks in at around 2 400 rpm. Stopping ability is provided via 14-inch ventilated discs in front and drum brakes at the rear.

The cab is spacious and comfortable with four way adjustable bucket seats which feature integrated headrests. Power steering is standard.

Great features from a maintenance point of view are the tilting cab which allows easy access from all sides to the engine and a front cab panel which opens to allow easy checking and refilling of windscreen washer fluid, anti-freeze and, when fitted, air conditioner fluid.

The load box is big measuring 4,7 sq metres and is designed as a single unit. The floor is corrugated for cargo stability and there are other neat and well thought out touches such as a ball being added to the end of the 12 load hooks on each side of the cargo box to improve the grip of the securing rope or webbing.

It's also a pretty looker and with a warranty of 3 years/100 000kms and a price tag of R99 995, we predict it's going to notch up quite a few sales for Kia. Without doubt, it's in the race.

Of course, a good truck without exceptional back up service isn't worth anything. In this regard, is will be sold and serviced through 35 Kia dealers throughout South Africa. We also got the whisper that Kia is currently negotiating with Tyco to provide that all essential 24-hour back-up service. Tyco is also part of the Imperial group so it shouldn't be too hard to arrange. Mike Koch might like a few small ones in his workshops.

As for the Kia Pregio panelvan which is priced at R125 995? Well, it's certainly a good looker with all the right features including being fitted with the same 2,7 J2 diesel engine as is in the Kia 2700. However, we have our doubts on this one as the market seems to have moved away from the panelvan. Downwards it has moved to products like the Renault Kango and even to bakkies like the Opel Corsa fitted with canopies. Upwards, the move has been towards the Sprinter, Iveco and Boxer vans. The traditional panelvan no longer seems to be a major item on the shopping list.

This is borne out by sales figures where the traditional vans are selling just over 100 a month as compared to the smaller vans which have seen a constant rise this year to reach over 220 unit sales in July. The medium vans (Sprinters, Ivecos, Boxers) have fluctuated this year between lows of about 30 a month up to about 65 on good months. 

Is Kia seeing something we don't? Maybe there will be a move back to the panelvan - and perhaps the security angle will act as the big push. A bakkie with a canopy is not secure. Also standing in favour of the Kia Pregio is the fact that, being new, it will not be a target for hijackers looking for a ready source of spares to service the existing van park out there. The Toyota Hi-Ace was hard hit by this vile practice.

Time will tell - and I may well have to eat my words on this one. However, one thing is for sure: the Koreans are determined to stamp their mark on this market with both these new products.

To Kia we say: Welcome to the wonderful world of South African trucking.