S. Korea's second-biggest carmaker Kia to launch Stonic SUV next month

Kia Motors Corp., South Korea's second-biggest carmaker, said Tuesday it will add a new SUV to its lineup next month to boost sales.

Kia Motors has developed the Stonic subcompact SUV as part of its efforts to absorb growing demand for SUVs at home and abroad amid a global economic recovery and low oil prices.

The B-segment SUV market is rapidly growing particularly in Western Europe and about 1.1 million subcompact SUVs were sold last year, accounting for 7 percent of overall vehicle sales there, the company said.

"By volume, the B-segment is expected to overtake the crossover SUV segment by 2020, when more than 1 in 10 new cars sold in Europe will be cars like the Stonic," Michael Cole, chief operating officer of Kia Motors Europe, said last week.

The Stonic mated with a 1.6-liter diesel engine and a seven-speed double-clutch transmission will go on sale in the domestic market July 13, Kia said in a statement.

The new car will have a price tag of 19 million won to 23 million won (US$16,700-$22,600), depending on the trim it said.

The maker of the K5 midsize sedan and the Sorento SUV also plans to launch the new car in Western Europe during the third quarter.

Early this month, Hyundai Motor Co., Kia's larger sister company, also unveiled its first subcompact SUV Kona to bolster its SUV lineup. Hyundai owns a 34 percent stake in Kia. The two together form the world's fifth-biggest carmaker by sales.

(YONHAP)