Kia Sees China Gain From Small Engines Eligible for Tax Cut
- About 70 percent of Kias sold in China are small vehicles
- China cut small-car purchase tax by half from Oct. 1
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Kia Motors Corp. predicted it will gain by adding smaller engines to its models in China, after the government in the world’s largest auto market cut purchase taxes by half for vehicles with smaller powertrains.
The Seoul-based carmaker will begin offering a 1.6-liter turbo engine for its K5 sedan and Sportage sport utility vehicle and plans a new K2 hatchback next year that should benefit from China’s purchase-tax reduction, Chief Financial Officer Han Chun Soo said Friday. Almost 70 percent of Kia’s China sales are small vehicles, he said.