Sept 21, 2011 (LBO) – The Sri Lankan agency for South Korea’s KIA Motors is to invest about a billion rupees in the next three years to expand its service facilities amid a surge in sales of sports utility vehicles. Imports of motor vehicles into the island surged after the government slashed import duties, some of which were later increased again. KIA Motors (Lanka) said it sold more than 1,500 SUVs in first half of 2011, which works out to an average of about eight vehicles a day.
“Sales of KIA SUVs â€˜Sorentoâ€™ and â€˜Sportageâ€™ exceeded 1,500 units in the first six months of the year,” the company said in a statement.
“Meanwhile, orders are flowing in for all models including the 2011 KIA Optima luxury sedan previewed in Colombo in May.”
Two new models, the Rio mid-sized hatchback and the five-door compact Picanto, are to be introduced in the market, Mahen Thambiah, Managing Director of KIA Motors (Lanka) Limited said.
KIA Motors plans several new sites for service facilities to support the increased flow of KIA vehicles in to the country, he said.
With work on its second facility already commenced, the expansion plan would be in two stages.