South Korean automaker Kia is trying to develop manufacturing, gross sales community and its product vary in India subsequent yr as a part of an “aggressive enterprise” plan to counter enhanced competitors out there, a prime firm official mentioned on Thursday. The automaker, which on Thursday globally premiered the most recent model of its compact SUV Sonet, additionally plans to curtail exports from the nation with a purpose to successfully cater to the demand within the home market.
“We’ve an aggressive marketing strategy for subsequent yr. We need to add 100 extra gross sales retailers and improve put in manufacturing capability by 1 lakh items,” Kia India Managing Director and CEO Tae-Jin Park advised PTI in an interplay.
The corporate presently has a manufacturing capability of three.4 lakh items each year at its Andhra Pradesh-based manufacturing plant.
Kia presently has 429 gross sales retailers within the nation.
When requested in regards to the funding on the capability enlargement, Park didn’t share the main points however famous that it could be “substantial”.
He mentioned that the corporate’s gross sales had been impacted final yr attributable to a wide range of causes together with part scarcity and the problems stand resolved now.
Elaborating on the improved concentrate on the home market, Park mentioned Kia would curtail exports from the nation in 2024.
The abroad shipments subsequent yr could be as much as 10 per cent of the general manufacturing, he added.
Kia presently exports round 20 per cent of its manufacturing to world markets.
On enhancing the gross sales community, he mentioned the corporate is trying to goal tier III and tier IV cities subsequent yr whereas additionally enhancing presence in among the larger cities.
“We anticipate the home market to get extra aggressive and crowded subsequent yr, so we’re taking a look at all these measures,” Park famous.
On new product introductions, he said that the corporate will introduce the brand new model of Carnival MPV within the nation subsequent yr.
“After that we’re additionally severely contemplating different fashions for the Indian market together with a mannequin that may be larger than the Seltos,” Park mentioned.
When requested in regards to the firm’s electrical automobile plans for the nation, he famous that Kia would launch EV 9 subsequent yr.
“In 2025 we’d provoke native manufacturing of a mass phase EV after which yearly we’ll hold introducing the electrical fashions,” Park mentioned.
The corporate goals to focus on 15-17 per cent market share of the EV market in India by 2030, he mentioned.
When requested in regards to the authorities insurance policies for the EV phase in India, Park mentioned, “It’s a little bit totally different from different superior international locations like America, Europe and even South Korea ”.
It’s about providing incentives to the purchasers in these markets whereas manufacturing incentives are being provided, he mentioned.
“So when you think about the inducement programme for EVs in India, it should take a while to popularise the EV and to remodel the Indian automotive trade,” Park said.
When requested if the corporate can be trying to introduce merchandise with alternate fuels like hydrogen and CNG, he famous: “We’re getting ready at the opportunity of bringing merchandise with hybrid and CNG as a part of enhancing environment-friendly choices out there.”
He famous that the corporate is constant with diesel trims throughout its product vary as there’s vital buyer demand for such fashions.
Diesel trims proceed to account for 40-45 per cent of whole gross sales in Seltos and Sonet, Park mentioned.
The brand new Sonet comes with petrol and diesel powertrains and greater than 25 security options, together with ADAS.
The corporate has additionally re-introduced diesel trims with handbook transmission. “Our ambition is to safe the main place within the compact SUV phase with the introduction of the brand new Sonet,” Park said.
The mannequin which premiered in India is now being exported to over 100 international locations, he added.