Kia streamlines global sales service for EV transition

Kia Corp., a South Korean carmaker under Hyundai Motor Group, has drastically reorganized its global after-sales service operations to offer more systematic customer service and manage data as part of efforts to win over skeptics of the transition to electric vehicles.

The organizational reform is also aimed at improving direct communication with its cars' owners, increasingly important in the era of software-defined vehicles.

According to Kia’s annual report released on Friday, the country’s second-largest carmaker has combined its global operations of after-sales service, customer satisfaction service and dealer networks into a separate division, dubbed the Ownership Management Division. The units were previously scattered throughout the company.

Kia’s global business management head Lee Tae-hoon will lead the new division.

The Ownership Management Division is also responsible for managing customer data so that it can use the data, including any problems from a maintenance and repair perspective, to develop new models.

“We carried out this reorganization to create intra-organizational synergy and strengthen our expertise by function,” said a Kia official. “We will upgrade our global after-sales service system to keep pace with the electrification trend.”

The division dedicated to its car owners will offer real-time monitoring of in-vehicle software, remote support, driving data analysis and diagnostic services.

User manuals are provided on the web and through the app. It will share repair procedures with after-sales employees, including mechanics, through the app.

Song Ho-sung, co-chief executive of Kia, previously said that in the era of EV mobility, it is necessary to provide new experiences at various customer contact points, not only when purchasing a car, but also during the time spent in the vehicle, and while charging and parking the car.

Last year, Kia posted its highest-ever operating profit margin of 11.6%, exceeding Tesla’s 9.2%. The Korean carmaker and its sibling Hyundai Motor Co. also together reaped the largest operating profit of Korean companies in 2023, beating Samsung Electronics Co., the most valuable company in the country. 

Write to Jin-Won Kim at Jin1@hankyung.com
 

Yeonhee Kim edited this article.