Kia Motors India is embarking on an ambitious expansion journey, with a focus on enhancing its manufacturing capabilities and market presence. The Korean automaker recently introduced the facelifted Seltos midsize SUV on July 4, marking the beginning of its next growth phase in India.
Capacity Augmentation
Kia, which already operates at near-full capacity of its 300,000-unit-per-annum plant in Andhra Pradesh, is in the process of expanding its manufacturing capacity to 430,000 units annually. Recognizing the potential of the facelifted Seltos, Kia aims to capitalize on this new offering to expand volumes both domestically and in the export market. In FY2023, Kia India achieved a significant milestone, selling 269,229 units—a remarkable 44% YoY growth (FY2022: 186,787 units).
Strategic Focus
Tae Jin Park, MD and CEO of Kia India, has outlined a strategy to achieve 10% growth in the current calendar year, amidst a slightly slowing market. The new Seltos is anticipated to play a pivotal role in driving these increased volumes. Although sales of the Seltos have faced competition challenges, Kia is targeting monthly sales of over 10,000 units to leverage the growing demand for midsize SUVs.
Renewed Seltos
Kia’s revitalized Seltos (internally known as Seltos PE) aims to recapture the five-digit monthly sales figures, which have proven pivotal in Kia’s success previously. The company’s goal is to surpass market growth, projected to remain in single digits. Globally, the Seltos remains a vital model for Kia, accounting for one in every 10 units sold. In India, it maintains a substantial market share, constituting 33% of the overall segment.
Expansive Vision
Kia India’s new mid-term plan, termed ‘Kia 2.0’, envisions significant growth. The company aims to achieve a 10% market share by 2028 and double its retail network to encompass 600 stores nationwide. This strategic approach reflects Kia’s determination to solidify its presence in India’s dynamic automotive landscape.
Strategic Product Diversification
Kia’s forward-looking product strategy involves launching a brand-new compact EV, addressing both Indian and global markets, along with an RV (recreational vehicle) EV within the next few years. These introductions are anticipated to broaden Kia’s market reach and contribute to incremental sales. Kia’s EV approach follows a top-down strategy, commencing with high-premium EVs like the EV6, and subsequently introducing the EV9, targeting the premium end of the EV segment.