Kia's U.S.-only midsize sport utility vehicle (SUV) "Telluride" is still logging strong sales in the market six years after its launch. It began gaining word of mouth in 2019 with an ad highlighting the pride of workers at the Georgia plant that builds the Telluride, and it secured a foothold with local production and solid product appeal. This year, with a full redesign that enlarged the body and added a hybrid powertrain, local demand is expected to grow further.
According to Kia on the 9th, 73,602 Tellurides were sold in the United States in the first half of this year. That is up 19.7% from a year earlier, the highest ever for a half-year. The Telluride's annual sales reached 123,281 last year, more than double the 58,604 units in 2019, its first year on the market. Its average annual growth rate over six years exceeds 13%. If this trend continues this year, projections say it could approach 150,000 units.
The Telluride is produced entirely at the Georgia plant in the United States. Kia actively used this point in promotion. In its launch year of 2019, it aired a 90-second commercial during the Super Bowl, the championship game of the National Football League (NFL), the largest sporting event watched by more than 100 million people. Instead of hiring a famous Hollywood star, Kia captured scenes of West Point, the small town where the Georgia plant is located, and the residents working at the factory.
In the ad, a child calmly narrates, "We are just a small, unknown town in Georgia. But we are remarkable people. We make remarkable things." The spot drew attention locally for authentically conveying the pride of the residents who build the Telluride.
This ad content was not an empty phrase. After visiting the Georgia plant at the time, Ambassador Cho Yoon-je to the United States said, "They say Kia revived Georgia's dying neighborhoods," and noted, "Residents who until recently thought of Korea as a poor and dangerous country now feel very proud to work for a Korean company where the Taegeukgi flies."
In fact, in Georgia, Kia is regarded as a key company that breathed life into the local economy. The state began to falter after its mainstay textile industry of the 1980s transferred overseas to places like China in search of cheaper labor. On top of that, the Ford and General Motors (GM) plants shut down during the global financial crisis in 2007–2008, accelerating the decline. When Kia invested in the Georgia plant in 2009 and Korean parts corporations entered alongside it, the depressed job market began to recover.
Product strength also backed it up. With a body similar to Hyundai Motor's Palisade, the Telluride is a large SUV by Korean standards but is classified as a midsize SUV in the United States. It is one of the few midsize SUVs there to offer a third row. The fully redesigned second-generation model unveiled late last year grew in length, wheelbase, and height by 58 mm, 76 mm, and 25 mm, respectively. Cabin space was greatly improved as a result. It also comes with off-road-focused trims aimed at local outdoor demand and a hybrid powertrain, which has been growing rapidly.
The Telluride's local production in the United States is cited as a representative "win-win" case that simultaneously boosted the regional economy and Kia's growth. An auto industry official said, "Unlike importing vehicles from places like Korea, producing locally secures supply chain stability," adding, "Minimizing customer wait times due to shortages is a major strength." The Palisade, which is sold entirely as an import from Korea, recorded first-half sales of 57,197 units this year, falling short of the Telluride.
The recent expansion of the U.S. midsize SUV market is also working in the Telluride's favor. In the past, American consumers mainly chose midsize sedans and minivans as family cars, but midsize SUVs are absorbing that demand. In addition, growing demand for hybrid vehicles over electric vehicles is a boon for the Telluride. An auto industry official said, "With the fully redesigned model equipped with a hybrid powertrain being rolled out starting this year, Telluride sales will continue to grow."