Kia Pulls the Plug on K5 Sales in Canada Amid Declining Demand
Last year, sales of 874 units decreased by 6.43% compared to the previous year
Sales volume is significantly lower than local competitors in the same segment
Kia is ceasing the sale of the mid-sized sedan K5 in the Canadian market. This decision is attributed to the rapidly declining local demand, which has reduced annual sales volume. The company plans to discontinue once the remaining inventory is cleared officially.
According to industry sources, on the 11th, Kia initiated the discontinuation process for the K5 in the Canadian market. The reason is that the local sales volume is significantly lower than competing models and is decreasing yearly. Last year, the K5 only managed to sell 874 units in the Canadian market, a 6.43% decrease compared to the previous year (934 units). This is the worst sales volume after the discontinuation of the Stinger.
Kia plans to halt local sales once the remaining local inventory is cleared. Initially, the company had plans to consider launching a new K5 model and proceed with pre-order reservations, but all plans were withdrawn due to the discontinuation decision. The judgment was that minor design changes were insufficient to capture the hearts of local consumers.
The industry predicts that K5 sales in Canada will end by next year. There is no possibility of the K5 being re-launched in the Canadian market after discontinuation. An industry official said, “It is appropriate to boldly exclude vehicles that have no possibility of securing local demand from the sales lineup,” and “Before the K5, Kia had decided to discontinue models such as the Soul, Stinger, and Rio, which had significantly reduced sales volumes.”
However, the sale of the K5 in the U.S. market will continue. Depending on future sales, there is room to follow the same steps as Canada, but it is still evaluated as having high potential. The 2022 Consumer Reports named the K5 the second-best mid-sized car sold in the U.S. in the $30,000 range.
Consumer Reports is the largest monthly consumer goods magazine published by the Consumer Federation, a U.S. non-profit organization. Every month, it provides consumers with comparisons of performance and prices for all consumer goods, including automobiles and home appliances.