Kia India is strategically gearing up to fortify its presence in the Indian market by embarking on a comprehensive refresh of its product lineup, curbing exports, and expanding its network in the upcoming year. Tae-Jin Park, Managing Director of Kia India, shared insights in an interview with an online media publication, highlighting India’s pivotal role as the fourth-largest market for the company. The Indian market alone contributes nearly 300,000 units, making up 10 percent of Kia’s global sales. This significant figure places India behind the domestic market in South Korea, where Kia sells approximately 700,000 to 750,000 units, and precedes the US and European markets with sales of around 650,000 units and 550,000 units, respectively.
In a notable move to invigorate its product offerings, Kia introduced the Seltos facelift in July 2023, featuring substantial upgrades both inside and out. The SUV’s higher variants have garnered substantial demand, accounting for an impressive 70 to 80 percent of total bookings. The recent global debut of the new Kia Sonet faceliftscheduled for January 2024, further emphasizes Kia’s commitment to the Indian market. The company’s manufacturing facility in Andhra Pradesh, with an annual production capacity of 3.4 lakh units, serves as the production hub for both these popular SUVs.
Looking towards the future, Tae-Jin Park revealed Kia’s plans for the localization of electric vehicle (EV) parts, aligning with the company’s pursuit of a mass-market EV set to debut by 2025. Efforts are underway for the localization of EV components, including battery production in Chennai. Kia is ready to explore the potential of exporting locally produced EVs to global markets. While EVs take precedence, Kia also envisions incorporating hybrid technology and compressed natural gas (CNG) fuel options in its lineup.
Anticipating increased competition in pricing and production dynamics within the Indian automotive market in the coming year, Kia India aims to allocate 10 percent of its production for exports. In April 2023, the automaker achieved a significant milestone by exporting over 2 lakh vehicles, with the Seltos emerging as a leading contributor. In less than four years of operation in India, Kia has successfully exported vehicles to 95 countries, underscoring its global footprint.
