Kia India Aims for 10% Market Share with SUVs Line-Up
Kia India has announced its plans to target a 10% market share in India by next year, up from its current share of around 7%. As part of its strategy to achieve this goal, Kia India will be launching three new models by 2025, all of which will be sports utility vehicles (SUVs). Of the three new models, one will be a small SUV with an internal combustion engine (ICE), while the remaining two will be electric vehicles (EVs).
In the first half of this year, Kia India recorded sales of 136,108 units in India, making it the third-largest market for the company after the US and Europe. This marked a growth of over 44% in FY23, with total sales of 269,229 units. Globally, Kia achieved its highest-ever first-half sales results, with a total of 1,575,920 units sold, representing an 11% increase compared to the same period last year.
Tae-Jin Park, Managing Director and CEO of Kia India, highlighted the high potential of the Indian market and stated that the current model lineup is not sufficient to maintain the company’s market share. He emphasized the need for new products tailored to the Indian market, which could include ICE and EV models locally produced in India.
Park also expressed optimism about Kia India’s growth prospects, expecting the company to outperform the overall passenger vehicle market in India. Kia India plans to open bookings for the upgraded version of its popular Seltos model on July 14, with sales commencing on July 25. To meet the growing demand, the company is ramping up production capacity to 350,000 units per year, which may increase to 430,000 units in the future.
Addressing the shrinking demand for diesel vehicles in India, Park confirmed that Kia will continue to offer diesel-powered vehicles as long as there is still demand. However, he mentioned that if emission norms become more stringent, the company may consider adopting hybrid and other alternative technologies.
In conclusion, Kia India is aiming to strengthen its market presence in India and achieve a 10% market share by next year. With the introduction of new SUV models, including both ICE and EV options, Kia India hopes to cater to the diverse preferences of Indian consumers. As the Indian automotive market continues to evolve, Kia India is positioning itself to capitalize on the country’s high growth potential.
