Kia America’s U.S. sales declined in the first quarter, but strong demand for crossovers and electrified models has brand officials feeling optimistic.

Volume dropped 11 percent to 59,524 in March and 5.2 percent to 151,196 for the quarter, with production and inventory undermined by key parts shortages, notably microchips. While Kia volume has dropped seven of the last eight months, the brand has gained ground in an overall market set to drop 22 percent or more in March and 15 percent or more in the first quarter, analysts say.

Kia was one of just three brands, along with Toyota and Lexus, with a 20-day or less supply of new vehicles in March, Cox Automotive said.

“There is an incredibly positive energy surrounding the Kia brand right now as we continue to outpace the industry and gain market share despite the ongoing industry challenges,” Eric Watson, vice president of sales operations for Kia America, said in a Friday statement.

Kia’s expanding electrified product lineup is helping the automaker fight industry headwinds, notably high gasoline prices. The new EV6 electric crossover continued to gain momentum, and the Niro, available as a hybrid, plug-in hybrid and all-electric model, is enjoying new interest from consumers seeking better fuel efficiency, Kia said. The redesigned Sorento and Sportage compact crossovers also offer plug-in and hybrid variants.

Consumer interest in the Telluride remained strong as the three-row SUV managed to squeak out a gain in the first quarter, despite a dip in March.

Notable nameplates: Kia EV6, a new model, 5,281 sales in first quarter; K5/Optima, down 13%; Stinger, up 27%; Niro, up 114%; Telluride, up 1%; Carnival/Sedona, up 59%.

Incentives: $1,373 per vehicle in the first quarter, down 50% from a year earlier, TrueCar says.

Average transaction price: $33,845 in the first quarter, up 15% from a year earlier, according to TrueCar.

Quote: “Kia experienced tremendous growth in the SUV and utility vehicle segments over the last few years,” said Watson, “and we are now seeing a similar trend in the electric space as we establish a leadership position in sustainable mobility.”