Continuous rises in steel materials and logistics costs this year, has forced Kia Motors to increase the prices of its new cars. Kia announced it would raise all car prices for the local market by an average of 2.03 percent and lift prices for overseas markets by an average of 2.5 percent from August, next month.

Kia has no other choice but to raise prices as it can not endure recent changes in the business environment. In the first five months, prices of steel plates have increased more than 60 percent, while logistic costs have gained up 27 percent the company said, adding that raw material prices are expected to raise further during the year. [Source: Reuters]