KIA plans in the medium term to be the leading company in electric cars in the world, for which it wants to bring its models of this type to Mexico, however, it considered that the market is not developed and the elimination of the Value Added Tax ( VAT) would help boost the sale of this type of vehicle in the country.

The director of the automaker in the country, Horacio Chávez, told Forbes Mexico that they are technologies that are still expensive due to economies of scale, so an attractive price is necessary, that they be affordable for people.

According to the director, this has been achieved in nations that have implemented incentives, clear public policies, so he hopes to obtain this in the short or medium term from the authorities, along with an infrastructure development plan for be able to use them on a daily basis.

"It seems to me that the value added tax is the easiest thing, that they simply did not charge it, lowering the price of vehicles by 16% seems to me that it would make marketing take off, putting it at an affordable price," he said.

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Over the years there have been various talks with the authorities and the subject is being talked about more and more. An example of this is the agreement to which Mexico adhered to the proposal of the president of the United States, to try to reach 50% of the commercialization of vehicles jointly, to which several powers have joined.

"KIA is promising to become the leading brand in terms of electrification, mobility, if that is the company's medium and short-term vision, of course in Mexico we will be seeing more options, we will eventually have our electric vehicles and we will to end up joining that portfolio of electric vehicles that KIA is developing”, he specified.

As part of this plan, the company will launch the second generation of its Niro hybrid in the country, a model with which it has positioned itself as the second player in the segment in the national territory.

However, the automotive sector also faces other challenges in the country, which range from a shortage of new units or components, as well as inflation and the rise in prices of vehicles sold in the national territory.

However, the automotive sector also faces other challenges in the country, which range from a shortage of new units or components, as well as inflation and the rise in prices of vehicles sold in the national territory.

In this regard, the director of KIA Mexico assured that they have dealt with the issue of semiconductors better than the rest of the sector and maintain sales of around 7,000 vehicles per month, although the mix of models has changed.

In this sense, he explained that his Rio, Seltos and Soul models have been charged more, however, he confirmed that in the rest of the vehicles they have registered some problems; Despite this, they will close the first half with 45,000 units sold, which puts them in line to reach their plan for 2022 of 95,000.

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He also commented that there are inflationary pressures with the issue of oil, steel and all the logistical issues they face, ranging from a war to Covid-19, which is being reflected in the increase in vehicle prices in general.

But despite the shortage, the manager said that all the products that are reaching most brands are being marketed.

The director specified that the increase in prices in the automotive industry in general is between 8 and 9%, but the company has had increases below that percentage, around 7%.

Regarding the scarcity of water that Monterrey suffers, the manager clarified that its Pesquería plant has not been affected, since a good part of the liquid it uses is treated water.

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