Luckily, it is possible for US/CA/EU investors to purchase Kia shares even though they are not listed on a US exchange.
Let’s see what options are available for buying Kia stock to help you make an informed decision.
Who owns Kia?
Hyundai Motor Group bought Kia in 1998, and they also own Hyundai and Genesis Motors. Both of these brands are South Korean automakers.
1. How to Buy Kia Stock
Purchasing Kia Motors Corporation stock may be a beneficial move for investors interested in the automotive industry, particularly as Kia exhibits a strong focus on electric vehicles and sustainability.
The multinational South Korean carmaker, known for its production of high-quality cars such as sedans, SUVs, and electric cars, trades under the stock symbol “KIMTF” on the OTC market.
Kia is not directly listed on a US exchange, but its stocks can still be acquired by American investors through Over-The-Counter (OTC) trading.
To buy Kia Motors shares, you need to follow a few steps.
Begin by opening an account with a reliable stockbroker that supports OTC trades. Some well-known online brokerages include Charles Schwab, TD Ameritrade, E*TRADE, Fidelity, Robinhood, WeBull, and Vanguard Brokerage Services.
Once your account is set up and funded, you can then search for the Kia stock using its OTC ticker symbol, ‘KIMTF’.
Decide on the amount of money you want to invest in Kia Motors, taking into consideration the current stock price, your risk profile, and investment strategy.
Then, place your order and wait for confirmation of your purchase.
It’s important to note that OTC investing carries inherent risks due to potential volatility and less trading liquidity compared to stocks listed on centralized exchanges.
Therefore, comprehensive research and possible consultation with financial advisers are advised before making an investment.
2. The Growth Potential of Kia Stock
Investing in Kia Motors Corporation offers exciting growth potential.
The company is part of the Hyundai Motor Group, which is demonstrating a considerable focus on the development of mobility and autonomous vehicle technologies.
According to CNBC, Kia’s CEO Ho Sung Song stated that the car manufacturing company has set a target to sell 1.6 million electric vehicles annually by the year 2030.
Recent news indicates a potential partnership between Hyundai-Kia and Apple Inc., aiming to manufacture a new line of electric vehicles.
If this collaboration finalizes, it could significantly bolster Kia’s position in the electric automotive industry and potentially lead to an increase in stock value.
Kia Motors has a diverse product range and a strong brand name globally, which also adds to its growth potential.
The company’s key markets include America and China, where its electric cars and other high-quality vehicles are popular.
These factors, combined with the company’s focus on sustainability, create an enticing prospect for investors.
However, investing in Kia also comes with certain risks. These include stiff competition from traditional companies like Ford, Toyota, and emerging players like Tesla.
According to these sales figures, we can see that the sales figures have increased by 50% between 2020-2023.
Dependence on innovation and the markets of America and China also pose potential challenges.
Despite these risks, Kia’s growth potential, fortified by its broad product range, strong brand name, and commitment to sustainable practices, make its stocks an appealing option for potential investors.
3. Risks of Investing in Kia Shares
Before you dive headfirst into investing in Kia Motors Corporation (KIMTF), it’s important to consider the potential risks involved.
One of the major challenges facing the company is stiff competition in the automotive industry.
Not only does Kia face local competition from companies such as Hyundai and Samsung Motors, but it also competes against global automotive giants like Toyota, Ford, and Tesla.
The competition is particularly intense in the segments of electric and hybrid cars, SUVs, and sedans.
Another risk to consider is Kia’s heavy reliance on the markets of America and China for the sale of its cars.
Economic fluctuations, regulatory changes, or geopolitical tensions in these key markets could negatively affect the company’s performance.
Furthermore, the carmaker’s success is heavily dependent on constant innovation and the ability to predict consumer preferences in a rapidly changing market.
Delay in innovation or misjudgment of market trends could pose a risk to potential investors.
Moreover, investing in Kia involves OTC investing risks as the stock is traded over-the-counter (OTC).
This type of investing could be riskier for average investors due to potential volatility and less trading liquidity compared to stocks listed on centralized exchanges.
4. Investing in Mobility and Autonomy: Kia’s Focus
In an industry where innovation is paramount, Kia Motors is making substantial strides in the realm of mobility and autonomous vehicles.
The South Korean automaker, in conjunction with its parent company Hyundai Motor Group, has been focusing on the development of autonomous vehicle technology.
One notable partnership Kia and Hyundai entered into is with Aptiv, a global technology company that is paving the way for the future of mobility.
This partnership aims to develop a world-class platform for autonomous driving. If successful, this move could enhance Kia’s position in the global automotive market and potentially offer substantial returns to investors.
Besides, rumors of Hyundai-Kia potentially partnering with Apple Inc. for the manufacturing of a new line of electric vehicles is another intriguing development.
If this collaboration gets finalized, it could propel Kia’s growth in the realm of electric vehicles and position it as a major player in this growing market segment.
This focus on the future of mobility and sustainable transport solutions fits well with the ongoing global shift towards clean energy and could make Kia an attractive proposition for prospective investors interested in sustainability and innovative technology.
5. How to Purchase Kia and Hyundai Stock
Buying Kia and Hyundai stocks, publicly-traded under the symbols “KIMTF” and “HYMTF” respectively, involves a few steps.
First, you need to open an online brokerage account with a platform equipped for Over-the-Counter (OTC) trading.
These online brokerages provide a centralized exchange for buying and selling OTC securities.
After opening and funding your brokerage account, you will be able to purchase Kia and Hyundai shares.
It’s important to note that Kia Motors Corporation is a South Korean company, and its stocks are traded on the OTC market in America.
To buy shares, simply search for the stock code “KIMTF” for Kia or “HYMTF” for Hyundai. Confirm the current price, enter the number of shares you wish to purchase, and execute the trade.
Do keep in mind that OTC investing carries a certain level of risk due to potential volatility and less trading liquidity.
Remember to account for possible fees and commissions charged by your chosen broker-dealer. These can impact your net investment and should be factored into your decision.
While some brokerages offer commission-free trades, others may charge per transaction. It’s also wise to consult with a financial adviser to understand your risk profile before diving into OTC investing.
6. The History of Kia and Hyundai Motors
Kia Motors Corporation, founded in 1944, is a multinational carmaker based in South Korea.
The company began by manufacturing steel tubing and bicycle parts. It later started making licensed small motorcycles, trucks, and eventually its own cars including sedans, SUVs, and electric vehicles.
Today, Kia is known for its high-quality cars, strong brand name, and diverse product range, reflecting its growth potential in key markets such as America and China.
Hyundai Motor Company acquired Kia in 1998 following a bankruptcy, and now owns a 33.88% stake in Kia Motors.
This strategic move consolidated the automotive industry in South Korea, making Hyundai-Kia a global player.
Hyundai itself is an automotive giant, owning a part of 22 Hyundai companies with ownership percentages ranging from 4.9% to 45.37%.
The Hyundai-Kia alliance is focused on sustainability and innovation. They have embarked on developing mobility and autonomous vehicle technology, and are exploring a potential partnership with Apple Inc. to manufacture a new line of electric vehicles.
This commitment to electric driving and autonomous vehicles further boosts their attractiveness as investment options.
In recent times, both companies have shown dedication to producing electric and hybrid cars to meet the demand for eco-friendly vehicles.
This, coupled with their efforts towards sustainable mobility solutions, adds to their credibility in the global automotive industry.
7. Comparing Kia Stock to its Competitors
Before deciding to invest in Kia Motors Corporation, it’s important to compare its performance to its competitors in the automotive industry.
Some key competitors include Hyundai Motor Company, Ford, Toyota, and Tesla.
Hyundai Motor Company, which owns a 33.88% stake in Kia Motors, is a key competitor in the industry.
Its stock, HYMTF, is also available for OTC trading, like Kia’s KIMTF. However, its stock is currently considered a hold candidate at its current level, suggesting a less attractive growth potential compared to Kia.
American car manufacturer Ford is another significant player in the market.
Its diverse product range and growing focus on electric vehicles make it a competitive stock. However, its dependence on the American market, as opposed to Kia’s strong presence in both America and China, could present a limitation.
Japanese carmaker Toyota is known for its quality and reliability, much like Kia.
However, Toyota’s strong hold on the hybrid market and substantial resources could make it a formidable competitor.
Tesla, a leader in the electric vehicle market, is a notable competitor, primarily due to its innovation in electric and autonomous vehicles. Given the potential collaboration between Hyundai-Kia and Apple Inc. for a new line of electric vehicles, Tesla’s market position could be challenged.
In conclusion, while each of these competitors presents their own strengths and weaknesses, Kia’s strong brand name, diverse product range, and focus on sustainability and innovation make it a worthy contender in the market. Potential investors should factor in these comparisons when considering whether to invest in Kia Motors shares.