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The carmaker crossed 5 lakh. unit sales in under three years since its entry in India, becoming the fastest to do so ever in this country
Kia Motors’ entry into the Indian automotive market in August 2019 signified a major step in its global expansion strategy. Known globally for modern designs and technological innovation, the South Korean brand adopted a strategic approach in India, balancing affordability with luxury. Offering a variety of model variants at optimal price points, Kia quickly captured the market’s attention. The carmaker achieved a remarkable milestone by crossing 5 lakh unit sales in less than three years since its entry here, making it the fastest to reach this milestone in the country.
In 2022, Kia India registered its best-ever annual sales, with a total of 254,556 units sold. This represented a substantial year-on-year increase of 40%, with domestic dispatches standing at 2,54,556 units, translating to an impressive 40.1% year-over-year growth. These figures reaffirmed the brand’s increasing popularity among Indian buyers.
This growth was, in fact, driven by a strong SUV lineup, including the Sonet, Seltos, and the MPV Carens, which grabbed a significant share in India’s rapidly growing utility vehicle segment. In fact, the SUV range – Sonet, Seltos, and MPV Carens – has contributed notably to this growth, capturing a 13% share of the Indian utility vehicle market.
By 2023, Kia’s performance in India was impressive, with profits growing over 150% in FY2023 to Rs 2,122 crore and a turnover increasing by 53% year-on-year to Rs 38,783 crore. The company produced 359,323 vehicles, marking a 52% increase from the previous fiscal year. Contributing 9% to Kia’s global volumes, Kia India aims to expand its market share and dealer network, explore EV6 assembly in India, and introduce multiple electric vehicle options, reinforcing its commitment to growth in the Indian automotive market.
The latest addition to the brand’s portfolio in India was the 2024 Kia Sonet facelift that was unveiled on December 14, 2023, solidifying Kia’s position in the competitive sub-4m SUV segment. The anticipated price range of Rs 8 lakh to Rs 15 lakh positions the Sonet facelift competitively. The vehicle has received major updates like new LED headlights and taillights, redesigned bumpers, and an updated cabin featuring a new touchscreen infotainment system and a fully digital instrument cluster. These enhancements aim to boost the Sonet’s appeal in the compact SUV segment, a significant driver of Kia’s growth in India. Here are the other drivers behind Kia’s meteoric rise in India.
Kia Seltos:
Since its August 2019 debut, the Kia Seltos has become a prominent figure in India’s compact SUV market. By October 2023, the Seltos had sold 83,250 units in India, demonstrating its strong market presence. Its mix of modern design, comprehensive features, and competitive pricing has made the Seltos a popular choice in the compact SUV segment, appealing to a wide range of consumer preferences.
Kia Seltos (Image: Kia Motors India)
The Seltos underwent a notable facelift in 2023, receiving design and technology upgrades to keep pace in a competitive market. This update was part of Kia’s efforts to ensure the Seltos remained a relevant choice for consumers. To celebrate its success in India, Kia released special editions like the 2020 Anniversary Edition and the 2021 X-Line, each adding distinct design features and enhancements to the Seltos range.
Kia Sonet:
Launched in September 2020, the Kia Sonet has significantly influenced India’s subcompact SUV segment. It marked Kia’s entry into the competitive sub-4-metre SUV category, following the successes of the Seltos and Carnival.
The Sonet received a major facelift in December 2023, featuring extensive exterior and interior updates, including new features like the Advanced Driver Assistance System (ADAS). These changes were part of Kia’s commitment to keeping the Sonet contemporary and competitive. Its appealing design, feature-rich offerings, and various powertrain options have made it a popular choice in the Indian market. The Sonet’s sales have been robust. In November 2023, it sold 6,433 units, contributing to a total of 368,000 units sold in India by October 2023.
Kia Carens:
Since its introduction to the Indian market in February 2022, the Kia Carens has become a noteworthy member of Kia’s Indian lineup. Designed as a three-row MPV, the Carens offers spaciousness and a rich set of features, appealing to Indian consumers seeking both comfort and functionality.
An updated version of the Kia Carens is anticipated soon. This facelift is expected to include enhancements such as the Advanced Driver Assistance System (ADAS), aiming to boost its market appeal and maintain competitiveness. The Kia Carens X-Line was launched in India in October 2023. This edition presents a more premium and exclusive option within the Carens range, targeting customers desiring extra features and unique styling. The sales performance of the Carens has been steady since its debut. In November 2023 alone, 4,620 units were sold, with even higher figures earlier in the year, such as the 8,047 units sold in June.
Kia Carnival:
Since its introduction in India in February 2020, the Kia Carnival has established itself as a notable player in the premium MPV segment. Known for its spacious interior and luxurious features, the Carnival quickly gained popularity for offering a luxurious ride.
The launch of a facelifted version in expected in 2024, known as the Kia KA4. Showcased at Auto Expo 2023, this model is set to feature updates aligning with Kia’s latest design language. Kia reinforced the Carnival’s lineup in 2021 with the introduction of the top-spec Limousine Plus variant, priced at Rs 33.99 lakh (ex-showroom, India). This variant boasts luxury features like a Harman Kardon sound system, electronic parking brake, and a dual rear-seat entertainment system. Additionally, the Limousine and Limousine+ variants received updates, including Kia’s new corporate logo, 18-inch crystal cut alloy wheels, and premium leatherette seats with diamond-shaped quilting.
The Carnival’s sales in India have been a mix bag. For instance, 419 units were sold in November 2022, with a significant increase to 1,003 units in January 2023.
Electric Future
Kia Motors’ investment Rs 2,000 crore towards research & development, infrastructure, and manufacturing of electric vehicles (EVs) in India underscores its strategic commitment to electric mobility. The company aims to introduce two new locally manufactured EVs by 2025. The upcoming models, which are expected to include an electric SUV and MPV, will be critical addition to the brand’s portfolio. The introduction of the EV6, a premium offering in the EV segment, marked Kia’s initial step into India’s EV market. This model, despite being a full import, sets the stage for Kia’s future EV offerings in India.
Globally, Kia plans to expand its EV lineup to 15 models by 2027, showcasing its focus on sustainable and innovative mobility solutions. This global strategy, which includes advanced technologies like over-the-air updates and level 3 autonomous driving features, is indicative of Kia’s ambition to be at the forefront of the EV market.
Kia’s significant investment and upcoming model launches in India are part of a broader, global effort to transition towards electric mobility. This approach not only aims to cater to the evolving market demands in India but also strengthens Kia’s position as a global leader in the EV sector. The focus on sustainable technologies and diverse EV offerings is poised to drive Kia’s growth and reinforce its presence in the dynamic automotive industry, both in India and worldwide.
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