kia: Kia set to launch multiple new models in India with an eye on increasing market share

Kia India managing director Tae-jin Park told ET the company would drive in a minimum of two vehicles each with internal combustion engine and electric powertrains to shore up volumes by 2028. “We have set internal targets to grow market share under Kia 2.0. To realise these, we will focus on bringing in more products, ramp up capacity to meet demand for the new vehicles and also expand our dealer network,” Park said, adding the company though will only focus on the recreational or utility vehicle segment and stay away from the small-car segment.

Kia India potentially can ramp up operations to produce 600,000 units at its manufacturing facility. The company is looking at producing about 370,000 units in the ongoing calendar year, and 430,000 units in 2025.

The new products scheduled by the company will include an “India-inspired” recreational vehicle, which will be launched in 2025. The RV will come with both petrol and electric options. Kia India expects annual volumes of at least 70,000 units from this new product. Studies are also underway to drive in the EV9 electric SUV as early as next year.

To be sure, even as Kia has managed to make deep inroads in India’s passenger vehicle market, cornering a 7% share within four years of entering the market, the local arm of the Korean carmaker’s next five-year target is conservative. Park is cognisant of the growing competition in the segment in which its models are positioned.

“Yes, our market share targets are conservative as the segment is becoming more and more competitive,” said Park, alluding to the competition from Japanese and Indian carmakers. Park was speaking on the sidelines of the unveiling of the new Seltos.Meanwhile, Kia will retain the premium positioning in the market and is not looking to launch models below the Sonnet, which would remain the company’s entry-level model. “We are not looking to compete on price but on products,” said Park.Kia, which has seen better-than-expected demand for electric vehicles in the Indian market, estimates sales of EVs to grow ten-fold by 2030. “We expect the passenger vehicle market in India will be at least 5 million units by 2030. About 20% of these volumes will come in from EVs. Long term, we want to have at least 3-4 EVs to have a double-digit market share in this segment,” he said.

Mainstream automakers — from Maruti Suzuki to Hyundai Motor India and Toyota Kirloskar Motor — have scheduled the launch of EVs in the Indian mass market in 2025, by when charging infrastructure is expected to be more widespread in the country.

Park said India is a very important market for Kia globally. He said: “India is already the fourth largest market for Kia globally, contributing 10% to annual volumes. Our management realises the importance of the market here and has been supporting us with the necessary resources.”

The company said demand for its EV6, launched last year, has been very high. Kia India had allocation for 100 units of the EV6 last year, but had to request the headquarters for more supplies. Kia sold more than 400 units of the EV6 last year in India, where about 55,000 EVs were sold in 2022.

Globally, Kia has the technology for strong hybrids, plug-in hybrids, hydrogen and flex fuel vehicles, and can bring them to the Indian market, if needed, provided there is a business case for the technology.

Last year, Kia India’s sales grew 40% to 254,566 units. The company has moved onto the list of the top-5 automobile brands in the country within three years of starting operations.

Apart from domestic sales, Kia has been working on growing exports from India. The company ships a fifth of its India production to about 90 countries.