Kia considers 10-year warranty on anniversary of pioneering seven-year coverage

Kia Australia has vowed to maintain its leadership in the new-car warranty race as the company celebrates seven years of its pioneering seven-year coverage.

In October 2014 the South Korean car giant was the first car company in Australia to offer permanent factory-backed seven-year warranty coverage.

Over the years other brands including Honda, Mitsubishi – and at one stage Holden – briefly offered seven-year warranty deals during special promotional periods.

Today, the closest permanent warranty offers are from Chinese brand MG (seven-year coverage), Isuzu Ute Australia (six-year coverage), and Mitsubishi's conditional warranty, which can span up to 10 years in the right circumstances. 

Mitsubishi's 10-year coverage only applies if a car has only ever been serviced on time, within the Mitsubishi dealer network, for the entire period, otherwise the vehicle reverts to five-year coverage.

Kia Australia attributes much of its record sales growth over the past seven years to its seven-year warranty coverage, and says it is ready to respond if rival car companies increase their coverage to match.

“If you look at where we were in 2014, and what happened in the following years, there was a dramatic jump in sales,“ said Kia Australia CEO Damien Meredith.

“So there’s no doubt it helped, but I think it was most significant in that it gave Australians permission to look at the brand and that’s where the strength came from.”

Mr Meredith the increase to seven-year warranty coverage coincided with the introduction of a new-generation of Kia cars.

“It was the right thing for the right time and fortunately we've improved in a lot of other areas in regard to (our model range)," said Mr Meredith.

“I think our seven-year warranty was a fantastic catalyst for us, and it did a great job.”

Mr Meredith says he is surprised more brands have not followed with a seven-year warranty, but he is ready to respond if they do.

“I'm surprised ... no-one actually followed us,” said Mr Meredith. “We actually planned for three months of clear air and then we thought others would follow, but it just didn't eventuate. It's put us into a stronger position. Why they didn't follow, I don't know. I really don't know.”

Kia Australia says it is ready to take the next step to 10-year coverage should it need to.

“We're forever looking at what we could do (with warranty)," said Mr Meredith. “The whole team is forever looking at the permutations and combinations of its benefits, what it would cost, how it would work.

“So, we're always looking at it ... and if we need to address a 10-year warranty in the future, we'll certainly address it,” he said.