Kia Plans Big For India With Increased Production, Sales in 2024

Starting 2024, Kia will prioritise domestic market growth for a competitive edge in the Indian automotive industry

Kia Motors, the South Korean automaker, has mapped out an ambitious plan for its operations in India, to increase production, expand its sales network, and diversify its product line. In response to increasing competition, the corporation is preparing for an assertive commercial plan geared at satisfying the expectations of the developing Indian market. Kia’s dedication to this growth is shown by the recent global debut of their newest Sonet small SUV.

Tae-Jin Park, Kia India’s Managing Director and CEO, detailed the company’s extensive intentions in an interaction with PTI. As per Park, Kia wants to expand their footprint by adding a hundred new sales locations and expanding production capacity by a significant 1 lakh units. Kia, which now has a capacity of 3.4 lakh units per year in Andhra Pradesh, is planning a considerable increase in the future years.

Kia has already announced its goal to begin domestic manufacture of mass-segment EVs by 2025 to tap into India’s developing ecosystem of electric cars (EVs). The business intends to release new electric vehicles on an annual basis, to capture a significant 15-17 per cent share of the EV market by 2030. However, Park points out that India’s EV policies differ from those of affluent nations, emphasizing the importance of patience.

Kia recognizes the growing interest in alternative fuel sources and aims to investigate hybrid and CNG vehicles to match eco-friendly preferences. Despite this trend, diesel versions continue to be in high demand, accounting for 40-45 per cent of sales for models like the Seltos and Sonet.

With an emphasis on strengthening the home market, Kia plans to limit exports from India in 2024, lowering international shipments to 10% of total output, down from 20% currently. In addition, anticipating an expanding and competitive market landscape, the firm intends to broaden its sales network by targeting tier III and IV towns while reinforcing its presence in key cities.

Kia’s strategic activities in India may represent a concentrated attempt to capitalize on development prospects and meet the market’s changing expectations. Kia remains set for an exciting and competitive journey in India’s automotive sector, with a focus on growing infrastructure, broadening product options, and navigating the shifting terrain of electric and alternative fuel cars. The company’s dedication to innovation and market adaptation points to a bright future in the Indian automotive industry.