Naza Kia Malaysia has launched the third-generation Kia Rio in Malaysia.

The five-door hatch is available in EX and SX trim forms, priced at RM 73,888 (US$ 23,800) and RM 79,888 respectively, both on-the-road with insurance.

The car is powered by a G4FA 1.4 litre MPI Gamma engine, offering 109 PS at 6,300 rpm and 137 Nm at 4,200 rpm, mated to a four-speed automatic with a 'manumatic' manual shift function. The claimed combined cycle for the mill is 16.6 km per litre.

The new Kia Rio will be crucial for Naza Kia Malaysia in growing its sales volume by 22% to 15,000 units this year.

Naza Kia Malaysia chief operating officer Datuk Hafiz Syed Abu Bakar said the company was aiming to sell 200 Rio units each month. "The new Rio will play a pivotal role in growing Naza Kia Malaysia's sales volume this year. With the new Rio, we would be able to tap into the growing B-segment market," said Hafiz during the launch of the car.

Last year, the company grew its sales by 13% year-on-year to 12,309 units.

RM 60 million capex

Hafiz said this year, the capital expenditure (capex) for Naza Kia Malaysia was RM 60 million. "Half is for outlet or network upgrading and infrastructure, while the other half is for new equipment and jigs at the assembly plant in Gurun, Kedah," he said.

There are plans to open new Kia outlets in Rawang, Kuantan and Johor Baru this year. At present, the Naza Kia network consists of 60 showrooms and 77 service centres.

Hafiz said the capex of RM 60 million this year was significant, as the annual capex had been between RM 30 million and RM 40 million in the past few years. He said this was in line with the company's plans to rapidly grow its sales in the next few years.

Target

Naza Kia has targeted sales of 15,000 units this year, and sales of 22,000 units in 2014.

Hafiz said this year, the company would introduce six or seven new and facelifted models in Malaysia. He said Naza Kia achieved a revenue of RM 1.2 billion last year, and was aiming to grow revenue by 25% to RM 1.5 billion this year.

It should be noted that the new Rio was Kia's best-selling model outside of Korea in 2012 with 466,826 units sold. Hafiz said the Rio was aimed at those in their 30s and below, who wanted a trendy lifestyle vehicle that did not compromise on fuel economy and safety.