Kia awarded Brazil's largest import quota for third straight year
On September 14, Kia Motors announced it had been allocated the largest import
quota among 25 Asian and European automakers by the Brazilian government.
The new annual quota of 10,609 units will be in effect for one year from the beginning
Of the total 1998-99 import quota of 50,000 units, 44 percent (22,025 units) was captured
by Japanese automakers, 29 percent (14,467 units) by Korean automakers, and 27
percent (13,508 units) by European automakers. By automaker, the top-3 positions
were claimed by Kia with 21 percent (10,609 units), Mitsubishi with 15 percent (7,320 units),
and Toyota with 13 percent (6,424 units). The no. 2 Korean automaker was Daewoo at 6.3
percent (3,135 units). A total of 723 units remain unallocated for Korean automakers under
the new quotas.
This marks the third straight year Kia has secured the largest import quota since Brazil
launched the system in the 1996. Beginning with a quota of 8,564 units, the company's
quota has continued to rise, reaching 10,475 units in 1997-98 and 10,609 in 1998-99. Kia
currently sells the Sephia compact, Clarus mid-size sedan, Sportage sport-utility vehicle,
Pregio van, and K2700 1-ton truck in the local market. Once its international auction is
completed and management is normalized, the company intends to step-up its local
knock-down assembly operations, further expanding Brazilian sales.
As part of its efforts to prevent imports from taking away sales from locally-produced
vehicles, the Brazilian government instituted a quota system for imported cars in 1996.
Targeting Asian and European automakers without local production facilities, the quotas
are allocated by adding up the number of units sold by country and automaker during
the 40 months preceding the quota period and dividing by total sales to determine the
allocation ratio. Sales of cars within the quota benefit from a 50 percent reduction in
customs duty, reducing that figure from 49 percent to 24.5 percent.