The Indian automotive market is hard to crack! Although the sales numbers are rising and with increasing disposable income, more and more four wheelers are being sold, Indians are still very awkward about buying a vehicle. And why shouldn’t they? After all, a car is the second biggest investment after a home for a middle-class Indian. Hence, Indians are very particular about the vehicles they are buying.
As many top OEM owners have said in the past, an Indian buyer needs everything in a vehicle without paying anything for it. This has proved to be a challenge for many globally renowned big auto brands. For example, companies such as Chevrolet and Ford, doing otherwise well, consolidated their business in India. But that doesn’t stop new players from entering a lucrative market like India!
Also read: Kia Carens MPV launched in India for Rs 8.99 lakh, 15 variants on offer
As tough as it may be, India is a gold mine for business houses due to its massive population base. Kia Motors (now Kia) saw this huge opportunity and entered the Indian market in August 2019 with the launch of its first offering in the country, the Kia Seltos. The South Korean automaker, a part of the Hyundai Group, is known for making some of the best looking and technically loaded cars at affordable prices, which is why it is so successful in South Korea and the US.
They have replicated the same formula in India to offer technology-packed, youthful products at affordable prices and have captured a huge market in no time. Many trade pundits attribute the success of Kia to the product strategy of the brand apart from quality products and pricing. A look at the reasons behind Kia’s success in India, sales numbers and current portfolio –
Kia India is the fastest automaker to reach the milestones of one, two and three lakh domestic sales sales. The company recently registered a cumulative sales (domestic and export) figure of 5 lakh units. In just 2.5 years, Kia has a market share of around 6 percent and is one of the top 5 automakers in India by sales.
It is in constant conflict with Mahindra Auto for the fourth position. In February, Kia India reported 8.5 per cent growth in sales on a year-on-year basis. Kia sold 18,121 units in February as compared to 16,702 units in February 2021. However, sales declined slightly as compared to January 2022.
Kia Seltos remained the top contributor to Kia’s total sales with 6,575 units, while Sonet and Carrence contributed 6,154 and 5,109 units respectively. The company says semiconductor shortages remain a concern and are holding back sales. The automaker recently launched the third shift in India and aims to produce over 3 lakh units in the calendar year.
modern products
Kia India is offering some of the most feature loaded and well designed products to the Indian customers. From the entry level Sonnet to the flagship Carnival, all Kia cars have best-in-class features. The recently launched Carens also comes with several segment-first features.
Price determination
Modern and feature loaded vehicles does not mean that Kia products are expensive. In fact, Kia India is offering the most competitive products to the Indian customers. Case in point, the recently launched Kia Carense is priced at just Rs 8.99 lakh (introductory, ex-showroom) for the 7-seater MPV with SUV styling. The similarly exclusive and rival Hyundai Alcazar is priced north of Rs 16 lakhs.
dealership network
Apart from the products, Kia has one of the most modern and largest dealership network in India. The company also topped the ‘Dealer Satisfaction Survey’ conducted by FADA, for two consecutive years in 2020 and 2021. The quality of service and vehicle buying journey is highly acclaimed from all digitized and customers.
Security
Kia products are the safest in the market and this also increases the sales of Kia cars. Many young buyers consider safety as an important factor when buying a car. Recently, the Insurance Institute for Highway Safety (IIHS) recognized eight Kia vehicles including Seltos, Carnival in its 2022 Top Safety Pick (TSP) and Top Safety Pick+ (TSP+) award lists.
product mix
Another factor that played in favor of Kia India was its product mix for India. Kia started with the mid-SUV segment, which is heavily in demand, followed by the Kia Carnival premium MPV creating a new segment, which makes it a hit among celebrities. Not only that, Kia focused on the SUV fetish of India by launching a compact SUV and later an MPV with SUV styling. Though Kia has some really good sedans, the company says that they want to capitalize on the SUV wave in India.
As mentioned above, Kia has launched four products in India with its 2.5 years of sales operations in the country and is planning to launch many more products in the coming months. Here’s a look at the current Kia portfolio –
Kia Seltos
Kia Seltos was the first car launched by the South Korean carmaker in August 2019 and broke many shackles on how the Indian audience viewed the cars. The Kia Seltos offered a very European product with a high quality fit and finish, feature loaded and was the first “Made in India for the world” product. Kia has sold a total of 2,51,877 units of Seltos in the domestic market till January 2022. SUVs alone contributed to 65 per cent of Kia’s total sales in India.
Kia Carnival
The Kia Carnival was the next product to enter the Indian market and it was surprising to see that everyone was expecting another SUV from Kia. Launched during Auto Expo 2020, it created a distinct and distinct segment on its own in the premium MPV category. The vehicle has registered total sales of 9,737 units in India so far. It is a big hit among celebrities and businessmen looking for a great MPV for easy travel.
kia sonnet
The company’s first sub-4m SUV was launched in September 2020 and was the third product for India and the second ‘Made in India for the world’ product. The Kia Sonnet, like the Seltos, offers many segment-first features and in no time, has carved a niche for itself. The total domestic sales of the car reached 1,24,504 units as of January 2022. Car contributed 32 per cent stake in Kia India.
kia carens
The most recent product launch for Kia is the Carence MPV which the company is marketing as RV, a new segment with SUV-like styling. The car is available as a 6/7 seater configuration and was launched on 15 February this year after a gap of almost 1.5 years due to multiple lockdowns. This is the third ‘Made in India for the world’ product.
#Mute