Kia India is targeting 410,000 domestic vehicle sales by 2030 as it looks to accelerate growth through a wider portfolio of premium SUVs and electrified powertrains.
The company has laid out a roadmap of 10 new models by 2030, eight of which will carry some form of electrified powertrain, spanning electric vehicles, strong hybrids and CNG. The strategy marks a significant expansion of Kia’s portfolio as it seeks to move beyond its current dependence on a relatively small number of models.
Kia already has 430,000 units of annual manufacturing capacity in India, which gives it sufficient headroom to meet its 2030 domestic sales target. However, the challenge for the company will be to substantially increase sales and utilisation of that capacity while also growing exports.
“At this stage, we have adequate capacity,” Atul Sood, Senior Vice President, Sales and Marketing, Kia India, said. “And we are very much on track to utilise that actually.”
Sood said Kia will reassess its capacity requirements as it gets closer to 2030, particularly as exports also grow, but there is currently no firm plan for an expansion.
“Before that, we’ll have to study before that is what I feel, but that’s work in progress, but I can’t tell you a commitment or a date by when we will expand the capacity. And by how much, and where, honestly,” he said.
Sorento Launch
The company on Friday launched Sorento, positioned in the premium three-row SUV space. Prices start at ₹27.99 lakh for the seven-seat diesel HTE and go up to ₹40.39 lakh for the six-seat hybrid HTX(A) Black Line AWD.
The Sorento is offered with a 2.2-litre diesel and a 1.6-litre turbo-hybrid powertrain, with six- and seven-seat configurations depending on the variant. The diesel powertrain will be imported initially, while Kia plans to produce the hybrid engine locally from next year.
The move also underlines Kia’s attempt to hedge its powertrain strategy rather than rely solely on EVs. While the company is expanding its electric portfolio, it is simultaneously evaluating strong hybrids, which could become an important part of its strategy as consumer adoption of EVs evolves.
Sood said Kia is studying hybrid localisation, as local production would be necessary to make the technology competitively priced.
“If you have to get hybrid technology at competitive prices, localisation is required,” he said.
Kia’s sales growth will be critical to achieving its 2030 target. The company grew around 14.5-15% last year and is targeting double-digit growth this year. Wholesale sales have grown around 20% in the first eight months, although Sood expects the pace to moderate in the final three months as the low-base effect fades.
“We are targeting similar double digit growth this year as well,” he said.
The company expects cumulative growth for the year to be around 12-14%.
Exports will provide another avenue for capacity utilisation. Kia exported around 26,000 vehicles last year and currently supplies vehicles to around 64 countries. The company plans to expand exports as part of its longer-term strategy.
