Kia has announced that it will cease production of its compact sedan ‘K3’ and its mid-size sports utility vehicle (SUV) ‘Mohave’ in July. This move aims to optimize production efficiency by discontinuing poorly selling models and increasing the production of high-demand hybrid SUVs and pickup trucks.
Plant Adjustments
Kia plans to halt the production of the K3 and Mohave at Autoland Hwaseong Plant 1 by mid-July. However, the Sorento will continue to be produced at this plant. Starting from February next year, the plant will begin manufacturing Kia’s first pickup truck, the Tasman. In the interim, the production gap left by the two discontinued models will be filled by maximizing the output of the high-demand Sorento. Kia intends to focus particularly on the hybrid model, which accounts for over 70% of Sorento sales, to ensure adequate inventory. Last month, the Sorento’s domestic sales reached 7,865 units, making it the best-selling SUV in Kia’s lineup.
Reasons for Discontinuation
The decision to discontinue the K3 and Mohave stems from declining sales due to model obsolescence and the need for production efficiency. Without successors, these models will be phased out to concentrate on producing more popular vehicles. The K3, which debuted in 2012, is currently in its second generation, introduced in 2018 with a facelift in 2021. However, the demand in the compact sedan market has shifted towards equivalent SUVs, leading to a significant drop in K3 sales, with only 1,336 units sold last month. While Kia has introduced a successor model, the ‘K4,’ in some overseas markets, there are no plans for domestic sales.
First generation KIA Mohave
End of an Era for the Mohave
Similarly, the Mohave, once known as ‘Chung Eui-sun’s car,’ will be discontinued around the same time. Developed under the leadership of Chairman Chung when he was president of Kia, the Mohave has been in production for 17 years since its launch in 2008. Despite several rumors of its discontinuation over the years, the model underwent various updates to extend its lifecycle. The reasons for its discontinuation include sluggish sales and stricter emission regulations for internal combustion engine vehicles. Last month, only 257 Mohave units were sold.
Future Plans
To prepare for the production of the Tasman, Hwaseong Plant 1 will undergo adjustments during the summer vacation period from late July to mid-August. Last year, global sales of the Sorento reached 242,892 units (85,811 units domestically), and the production target for the Tasman next year is set at 65,000 units. Kia plans to introduce the Tasman to domestic and international markets, including Australia, Africa, and the Middle East.
