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South Korean auto giant Kia Motors has said it will focus primarily on the premium segment, and ruled out any plans to enter the small car segment because of pricing issues.
“Maruti Suzuki is a very big player and their presence here is much more than what we expected,” Kia Motors India MD and CEO Kook Hyun Shim told BusinessLine . In the long run, Kia might consider getting into the premium small car segment, he added.
Kia plans to launch its first car in India in the second half of next year. “The first car will be an SUV, code named SP2, and will be a mid-sized one of over 4 metres. This is an India-specific car,” Shim said. He added that at present there are no plans to import models from its global line-up.
Unlike its peers who may have to replace their current line-up once the new auto policy kicks in, Kia Motors can, in fact, take advantage of the new policy, said Shim. “We are well-prepared. Other companies may have to change the current line-up but we still have one more year and we will be ready to implement the new policy,” he said.
Indian investments
Kia Motors has committed to invest $2 billion in India. It has set up a plant at Anantapur in Andhra Pradesh and expects to produce 3 lakh units per year. In the next five years, it expects the market to grow to about 5 million cars, out of which it hopes to have a market share of 6 per cent.
“Even though we are a late entrant in the Indian market, we are well prepared to take advantage of the growing passenger car market in the country,” Shim said. The company has taken into consideration the rupee depreciation as well as the general elections next year, he added. “But we still believe that the Indian market will grow,” said Shim, who has earlier held global posts in the organisation.
Shim further said Kia is one of the top sellers in both the hybird and electric models globally and can roll out these cars from its plant in Anantapur whenever the Indian market is ready for it.
He, however, ruled out any plans for collaboration with Hyundai, which owns a stake in Kia Motors. “Especially in the Indian market, we have a different approach even though there are synergies between the two. We will have our own network, our own vendor base and run the operations separately,” he said.
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