With India emerging as the sixth-largest market and contributing 8-9% to its global sales, Kia Corporation is aiming to increase its market share in the country to 10%, from 7%, by the turn of this decade. Kia India is doubling its touch points as a first step towards this goal.
In a conversation with FE, Myung-Sik Sohn, chief sales and business officer, Kia India, said the carmaker is focusing on network expansion from the existing 300-plus touch points to more than 600.
In short term, this network expansion will help Kia India achieve 10% sales growth rate in 2023. “We have been growing at a rate higher than the industry and expect this trend to continue. While the industry is likely to grow 5-6%, we are targeting 10% sales growth in 2023,” he said.
A surge in RV (recreational vehicle) sales – the company calls its Carnival and Carens as RVs – along with mainstreaming of premiumisation trend and the expected healthy offtake during the festive season has Kia India upbeat on sales prospects.
This network expansion will also help the Korean carmaker achieve its long-term goal of 10% market share by 2030, as stated during the unveiling of the Seltos last month. Hardeep Singh Brar, national head, sales and marketing, Kia India, had told FE that by around 2030, the Indian passenger vehicle market is expected to reach 5 million units, and Kia is aiming to get 10% share of that. “This implies doubling our sales from the 254,556 units we achieved in CY22 to around 500,000 units by the turn of the decade,” Brar had said.
“We are building a long-term business in India, given the growing opportunity,” Sohn said. “We plan to introduce one more ICE (internal combustion engine) and EV (electric vehicle) next year, along with a locally manufactured RV (EV + ICE) in 2025 to grow our market share.”
He said Kia India is optimistic about the upcoming festive season, especially with the launch of the new Seltos, as well as the strong growth reported by the Carens and the Sonet in recent months.
“Historically, the festive season has proven to be equivalent to a 13th month of a year for sales, and given the rise in consumer spending and high consumer sentiment, we are upbeat about sales,” he said.
In terms of the premiumisation trend, Sohn said new-age customers are experimental and are continuously looking for distinctive products that are exclusive and unique. “They are ready to buy the right product at the right price,” he said. “Our products continue to demand a premium price in their segments, and 50% of our sales are of top-end variants.”
On the semiconductor supply issue, he said the situation has improved compared to last year, even though the carmaker is still facing some challenges. “To address this, we have optimised our production cycle to reduce waiting periods for both our existing and new products,” Sohn said.
“As a result of these efforts, deliveries for the new Seltos are already under way.”
He added that high interest rate and inflation will impact the demand in the next few months, and the erratic monsoon has had a slight impact on rural demand, “but we continue to see robust demand in urban areas”.
