Brand Image Hurt
Kia Motors will recall its first electric vehicle (EV) model, the KX3 (Seltos in the Korean market), in China due to faulty parts. Kia’s recall, which follows that of its sister company Hyundai Motor Co., raised concerns about a blow to the brand image of Hyundai Motor Group in the Chinese market.
Dongfeng Yueda Kia, Kia's Chinese joint venture, recently submitted a plan to the State Administration for Market Regulation (SAMR) to recall 309 KX3 EVs due to the possible malfunctioning of the integrated electronic brakes (IEB) systems.
The KX3 EV is Kia's first electric vehicle model released in the Chinese market in 2018. This model has been found to have safety risks due to faulty IEB software, which makes its brake pedal heavy when the brake warning lamp is illuminated. Kia Motors plans to recall the model and fix the software.
Although Kia will recall a small number of units, the recall is expected to inevitably hurt the brand images of Hyundai Motor Co. and Kia Motors in China where their sales remain sluggish.
The same problem compelled Hyundai Motor to recall a total of 2,591 units including the Encino EV and the Lafesta EV, a strategic sedan for the Chinese market, on Dec. 31. The recall will involve Encino EVs produced from March 22, 2019 to Dec. 10, 2020 and Lafesta EVs from Sept. 14, 2019 to Dec. 10, 2020.
Hyundai Motor and Kia Motors have failed to lead the Chinese EV market as they were late in launching EV models in China, the world's largest EV market. Hyundai Motor and Kia Motors are ranking low in the Chinese EV market.
Hyundai Motor recalled the Kona EV in Korea, the United States and Australia due to the same problem.
Meanwhile, Hyundai Motor announced on Jan. 9 (local time) that it will recall 471,000 units of the Tucson sold in the U.S., saying defects in the model’s anti-lock braking system could cause a fire. The recall covers some models of the 2016-2018 and 2020-2021 Tucson.