Kia Motors not to introduce sedans and hatchbacks in India anytime soon

Kia has recently completed its one year tenure in India. The company in the beginning launched the Kia Seltos in 2019, followed by the launch of its MPV, the Kia Carnival. However, the carmaker is all set to roll out sub 4-metre SUV the Kia Sonet in India.

Kia Seltos
Image Source: Autocar India
Kia Carnival
Image Source: Wikipedia

However, in a recent announcement, Kia has cleared its plan for its future in India. The company is planning to establish India as a market for the UVs while making it an exporting hub. Kia Motors also announced that it will stay out of the small car segment.

According to the data, a massive decline of 23.5% in the hatchback and sedan segment has been observed. Meanwhile, in the presence of Maruti Suzuki, Hyundai, and Tata Motors it will be a very tough competition for any new carmaker to establish itself.

For any brand to grow as an entry-level carmaker it requires a high level of localization. Meanwhile, the margin for the profit remains low. And thus, the number of units sold becomes the only parameter for success.

Kia despite the pandemic has managed to sell around 97,745 units of the Kia Seltos. However, with the arrival of the Kia Sonet, the Korean carmaker will be easily able to achieve the sales target of 1,30,000.

Kia Sonet
Image Source: CarWaale

India will be the export hub for the global market. Export, however, will remain one of the most important global strategies for Kia Motors.

Recently Ho Sung Song, President, and CEO, Kia Motors added to his statement that, “We will use the India factory as a standard export hub for compact and medium-sized SUVs because worldwide trend is that the SUV is getting stronger and stronger, while the hatch and sedan are getting decreased.


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