Regarding the company, it is a South Korean automotive giant headquartered in Seoul. Kia Motors is the second largest automobile manufacturer in South Korea and has a good reputation in many countries around the globe. The Korean manufacturer is well-known for its quality vehicles that employ advanced technologies and comes at a reasonable price.
Talking about Kia’s entry in India, the company seems quite confident about its future in the country. Their first entry will be the 2019 Kia Sportage, which is currently being tested under the codename SP2. As of now, the company has set a goal of making its annual sales to 300,000 units by the year 2021. According to the managing director of Kia Motors India, the company aims at launching a new car model every 6 months to achieve its overall sales goal.
The Korean company is currently setting up its own manufacturing plant in Andhra Pradesh and it is almost on the verge of completion. Earlier, the company has planned to launch its first-range of cars near Diwali 2019 but now customers can expect to see their cars at the outlets before the scheduled launch. Kia has decided to advance its launch due to two main reasons among which one is the construction of its manufacturing plant that is quite ahead of its schedule. Whereas, the other reason is the extraordinary response that the company had received from the Indian car enthusiasts in the Auto Expo Show held in Greater Noida.
Chances of Kia’s Survival in the India Market
Considering the diverse needs of Indian consumers, very few companies have been successful in exploiting the Indian auto market. Despite being the 5th largest auto market, Indian consumers are not easy to please. Even the leading name in the international automotive industry like USA based automaker General Motorshave terminated its sales in India after years of poor sales figures. In addition, during the operations of General Motors, it had introduced Opel and Chevrolet brands that were unable to put a significant impact in attracting customers.
Another company that is in speculations for planning to leave the Indian automotive market soon is the Italian automaker, Fiat. According to some sources, the company is planning its exit this year with the primary reason being the lack of sales. Taking the reference of both Fiat and General Motors, it is simply clear that entering and attracting a good number of shares in the Indian automotive market is not an easy task.
Coming back to Kia’s entry in the country, Kia has a few advantages on its hand that can help it to survive and grow in the Indian Market. Firstly, Hyundai is the parent company of Kia motors and has a reputable place among Indian buyers. Hyundai can assist the Kia to execute its marketing strategies in an effective manner. However, Kia has denied taking any direct help from Hyundai while making its first footsteps in the country.
Pertaining to the companies namely GM motors and Fiat, Kia Motors can take advantage of a decreased number of rivals in the current market. Moreover, there are plenty of customers who are willing to own cars from brands other than the one already prevailing in the country. Kia has to put in extra efforts to impress Indian customers who are demanding and at the same time are price-sensitive.
Talking about the plans of the Korean automaker, providing satisfaction to customers is the first priority along with delivering high-quality cars. According to some sources, Kia is emphasizing on establishing a large service network throughout the country that will cover remote cities too. Additionally, the vehicles to be launched by Kia Motors are already have BS VI compliant engines and this can act as a strategic upper hand for the company.
All in all, it is hard to predict how Kia Motors will perform in India after its official launch. However, considering the resources, expertise, and experience, Kia has a good chance of performing well in one of the world’s largest auto market.