Using on Sonet and Seltos, Kia Motors has huge plans for India

Larger exports can even drive up volumes, as the corporate seeks to avail of the advantages underneath the federal government’s just lately introduced manufacturing linked incentive scheme.

Pushed by sturdy home demand, Kia Motors India expects to achieve optimum capability utilisation by 2022 at its plant in Anantapur in Andhra Pradesh.

Larger exports can even drive up volumes, as the corporate seeks to avail of the advantages underneath the federal government’s just lately introduced manufacturing linked incentive scheme (PLI).


The native arm of the Korean carmaker has been driving excessive on the Sonet and Seltos within the home market in lower than two years after it rolled out the primary mannequin.

“Our main intention is to achieve full manufacturing capability of 300,000 models at our state-of-the-art facility in Anantapur.

“It’s extra in regards to the variety of autos offered reasonably than the market share,” mentioned T J Park, govt director and chief gross sales officer, Kia Motors India.

A constant month-on-month quantity positive aspects within the home market has prompted the Hyundai affiliate to start the second shift at its manufacturing unit.

“We’re assured of attaining 100-per cent capability utilisation by 2022,” underscored Park.

The ascent to the highest 5 of the leaderboard has been meteoric for the corporate.

In August, the South Korean automaker introduced it had crossed the cumulative 100,000-unit milestone inside 11 months of coming into the Indian market.

It began promoting its Seltos sport utility automobile (SUV) in August 2019 and later launched the Carnival luxurious multi-purpose automobile.

In September, it launched the Sonet, a compact SUV that rivals the Vitara Brezza, Mahindra XUV300, Tata Nexon, amongst others.

Final month, it grew to become the largest-selling compact SUV, zipping previous opponents.

Kia offered 11,417 models of the mannequin in November, cornering 22.07 per cent of the compact SUV market.

The positive aspects got here largely at the price of Suzuki’s Brezza, which noticed its gross sales plummet to 7,833 models, from over 12,000 models it offered a month in the past.

Whilst Kia has been on a robust wicket, Park shouldn’t be oblivious to competitors.

“There’s robust competitors within the Indian car {industry} at the moment, which is simply going to get extra aggressive.

“We perceive the necessity to always innovate and combine industry-first options in merchandise to distinguish ourselves from the remainder.

“Wanting on the response for the Seltos, the Carnival, and the early success of the Sonet.

“We will say that our analysis and studying have been on level,” mentioned Park.

Puneet Gupta, affiliate director, IHS Markit, attributes Kia’s success in India to the launch of feature-rich, competitively priced merchandise.

“They’ve managed to present a thrust to the SUV market, which was already rising at a wholesome tempo,” he mentioned.

Alluding to the affect of the Covid-19 pandemic on the enterprise, Park mentioned it has been probably the most difficult, but probably the most educating section for the corporate.

The most important takeaway, he mentioned, was the necessity to always evolve with the altering traits.

Park mentioned, “The PLI scheme is a major step ahead within the authorities’s efforts in direction of enhancing manufacturing, promote exports, and strengthen India’s place because the hub of the worldwide provide chain.”

The brand new PLI scheme definitely places the highlight on India and makes it much more necessary in Kia’s world scheme of issues, he added.

The Anantapur facility has been developed to make India one of the vital vital hubs within the Kia community globally, he mentioned.

Kia exports to over 70 international locations the world over, together with a number of the extremely developed markets.

“Now, with the brand new scheme, we will supply much more aggressive and globalised merchandise and attain extra markets,” he mentioned.

Kia shipped 20,819 models within the first seven months between April and October – nearly an eightfold enhance over the identical interval final yr – noticed the Society of Indian Vehicle Producers.

Images: Courtesy, Kia Motors India

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