Kia, the South Korean automaker, has ambitious plans for its presence in the Indian market. The company intends to introduce nine electric vehicles (EVs) in India next year and commence local production by 2025. Tae-Jin Park, Managing Director and CEO of Kia India, shared with PTI, “In 2025, we would initiate local production of a mass segment EV, and then every year, we will keep introducing electric models.”
When discussing government policies for the EV segment in India, Park acknowledged the differences compared to other advanced markets like the United States, Europe, or South Korea. He highlighted the absence of direct incentives for customers in India, unlike in other markets, where production incentives are prevalent.
Park emphasized that the incentive program for EVs in India would take time to gain traction and bring about a transformation in the Indian automotive industry. In addition to electric vehicles, Kia is also exploring the introduction of products using alternate fuels such as hydrogen and compressed natural gas (CNG). The company aims to offer a range of environment-friendly options to cater to evolving market demands.
Despite the shift towards electric mobility, Kia continues to meet customer demand for diesel-powered models and plans to enhance its product range with hybrid and CNG variants. Kia has reintroduced diesel trims with manual transmission, particularly focusing on securing a leading position in the compact SUV segment with the new Sonet model.
In terms of market strategy, Kia plans to target tier III and tier IV towns in the coming year, expanding its presence beyond major cities. Tae-Jin Park highlighted the expected increase in domestic market competition and congestion in the coming year, prompting the company to adopt strategic measures.
Kia has set a target to achieve a 10% growth in car sales in India in 2024, driven by an updated product portfolio and a new entry in the electric vehicle segment. The company also plans to boost production capacity by nearly a third, reaching 400,000 vehicles ahead of the festive season next year. The goal is to solidify Kia’s position in the dynamic and rapidly evolving Indian automotive market.
