One of the top automobile companies in the world is Kia Motors which is a South Korean company with many car models sold all over the planet in different categories and segments of the automobile market. Kia Motors for a long time was looking to enter the Indian market and to establish a firm market share in the vast automobile sector in this country. Kia Motors entered the Indian market in 2019 with its car Kia Seltos and has built a manufacturing plant in India in the state of Andhra Pradesh. It has sold over 100k car units in India since then and is considered one of the best performing car manufacturers in India over the last few years.
- Target Market Segments for Kia Motors in India
In India, people from all economic and social backgrounds buy different types of cars at different price points. Kia has been smart about the type of cars they have introduced into the market and has picked a few market segments to focus on to capture market share and to increase sales and profits in India. Kia Motors is primarily focusing on two market segments which are the entry-level SUV market segment and mid SUV segment of the market. They have introduced two cars into the Indian market which are both parts of the SUV segment of the Indian market. The Kia Sonet and the Kia Seltos helps Kia Motors capture market share in the entry-level and mid-level segments of the SUV market in India.
- Kia Motors – SUV Sales
September was a very good month for Kia Motors in the SUV segment of the Indian market. Kia sold over 9200 Kia Sonets in September and went ahead of competition like Hyundai venue and Maruti Suzuki Vitara Brezza. It also sold over 9000 units of Kia Seltos which gave it second place in terms of market share just behind Hyundai Creta. The popularity of these two cars is because they have great features and stylish designs. Even the future booking data for these two cars look impressive. Their multi-purpose premium vehicle called Carnival which was launched earlier initially got a poor response but the inquiries for this model also have picked up.
- Production Capacity of Kia Motors in India
The Andhra Pradesh plant of Kia Motors has a capacity of churning out 3 lakh units of cars in one year with 3 shifts but only 2 lakh cars can be produced with 2 shifts. Because of COVID restrictions and the nature of this pandemic, the production has been hampered. There are delays because Kia Motors also has to depend on their suppliers and during the pandemic supply chain is hindered. Due to the high demand for Kia Seltos and Kia Sonet, the wait time for these vehicles can go up to one month after booking.
Kia Motors just entered the Indian market last year and though it is available in over 160 cities across India, it still has room to grow in this country. They have high expectations for the festive season this year for sales of their cars and the overall outlook for Kia Motors in India looks bullish.