Hyundai to introduce Kia brand in India soon

by V3Cars Team on Thursday, Dec 08 2016

South Korean car maker, Kia Motors has been eyeing the Indian car market for quite some time now, and is expected to announce its plans for India very soon. Kia, which is Hyundai Motor’s sister concern is expected to announce its market strategy for India in around six months, as the company is reportedly currently finalizing its future Indian product portfolio, production, sales as well as marketing strategies.

When it comes to the operations in India, Kia should not face any trouble as Hyundai is the second largest car maker in this country. However, like in South Korea, in India also Kia will have a separate entity from Hyundai, although it will get all sorts of support from the latter. As per the sources, when the company finally hits the Indian shores with its products, it might decide to set up a separate manufacturing facility with a production capacity of 2.5 lakh per annum to start with along with the provision of scaling up the production later as per demands.

A source said that Kia still needs some time and it should take around 6 months for the company to come up with its final decisions on its entry into the Indian market. Moreover, Kia will require even more time to actually start launching its vehicles in India, as it would be requiring establishing its manufacturing operations in this country.

Kia is reportedly scouting for land for its planned manufacturing plant in several states, which includes Telangana and Andhra Pradesh. About this development a company spokesperson said that Kia Motors is constantly evaluating prospective locations for its overseas production plants which include India in order to ensure additional engines for the company’s future growth. However, currently there are no final plans.

It seems that the primary challenge that Kia Motors is facing in its planned Indian operations is planning to decide how to clearly distinguish its own products from those under the Hyundai brand, which is highly established in India.

According to the source, in India Kia Motors will also have its own dealership network and will have to plan on that too. The company is also considering manufacturing its own engines in this country, which will happen whenever it decides to start its operations here.

Kia Motors’ current global production capacity is more than 3 million units, while Hyundai Motor's global production capacity is currently around 5 million units per annum. In the international markets, Hyundai shares its parts as well as vehicle platforms with Kia. Hyundai Group acquired Kia back in the year 1998.

Hyundai Motors India, Hyundai’s fully owned Indian subsidiary currently offers many affordably priced car models in the Indian car market, which might pose as a challenge for Kia when it comes to market positioning. Kia Motors offers a range of vehicle models that include a compact crossover brand called Sportage; an urban crossover brand named Soul; Rio compact car; and mid-sized as well as luxury sedan models under the brands of Optima, Cadenza and K900. There are also hybrid and electric vehicle models from Kia.