Market sentiment in the Indian car arena could be lacklustre right now but excitement is assured in the second half of 2019 with SAIC and Kia gearing up to launch their debut SUVs.

What could be more intriguing than a Chinese and Korean player throwing their hats into a ring dominated by a Japanese auto-maker, Suzuki, which has ruled the roost for decades? What is even better is that Kia is part of Hyundai which, in turn, is the closest rival to Suzuki in the Indian market.

In all fairness, Kia and SAIC have not made any claim of upsetting the Maruti Suzuki applecart considering that it is virtually impossible to even contemplate something like this. The Japanese company stands tall with a market share of over 50 per cent and is only growing from strength to strength.

SAIC will have a British brand in the form of MG at its front-end, which is keeping in line with its strategy for overseas markets. It also makes sense perhaps because there is no telling how Indian customers will react to a Chinese auto brand. Sure, SAIC is the owner that will steer MG in this part of the world but all this will be at the backend in terms of manufacturing, sourcing and so on.

It was this very company that had first signalled its India intent during the global slowdown of 2009 when its longtime partner in China, General Motors, had its back to the wall and was in dire need of a lifeline. This was when SAIC stepped into the picture and formed a 50:50 joint venture with its American ally for the Indian innings.

The product portfolio was to include both cars and pick-ups and the stage was set for an all-new chapter for a Chinese auto-maker. SAIC was also keen on leveraging India’s manufacturing competencies as a hub for the ASEAN region. However, nothing eventually worked according to plan and SAIC bowed out while a rejuvenated GM took charge all over again.

Things have changed since then with GM exiting the Indian market place and its Chinese partner taking charge of the operations at the Halol plant in Gujarat. SAIC has been working around the clock since then and is all set to launch its debut offering, an SUV, in the latter half of this calendar year.

There is no question that the Chinese auto-maker learnt its lessons well during its first stint in terms of the Indian market’s complexities and the sheer diversity of the landscape. It’s a fair bet to assume that it will aggressively target buyers in Tier 2/3 regions offering them a tempting mix of a premium product at a competitive price.

As for Kia, it has no issues on brand recognition considering that it is a familiar part of the global terrain, especially in developed markets. In fact, if customer response to the Kia pavilion at the 2018 Delhi Auto Expo is any indication, the Korean brand has already hit a home run. The challenge now is to deliver on market expectations.

Going by the present pace of activity at its plant in Andhra Pradesh, Kia is also going all out to ready its dealerships for its debut SUV. Styling and design are the key elements of the company’s DNA and this will be a strong part of the customer connect exercise. This is where everything will have to be perfectly synchronised to ensure that its debut SUV takes off with a bang in the market.

Thanks to Hyundai’s good showing for over two decades here, the Korean brand association in India will translate into a strength for Kia. Yet, the company would rather steer clear of the Hyundai connection and build its own identity here. The two will obviously make the most of synergies at the back end but it will be a no-holds barred battle at the retail end.

Kia will be keen to make a strong statement and keep the momentum going in its India tenure. It has been a late entrant for sure but also knows that the penetration levels in the Indian car market are still minuscule at less than 20 per thousand people. This literally translates into a tremendous opportunity share, which Kia will doubtless be aware of and strive to capitalise upon.

In addition, the country will be in the midst of huge disruptions in the coming months and extending into the following decade. Beyond the national elections in 2019, which will have its own share of market uncertainties, BS VI emission norms will become a reality in April 2020. As cars become more expensive and customers in big cities gradually begin to steer clear of ownership and opting for the Ubers and Olas, the likes of Kia and SAIC will be the new entrants in a rebooted arena. Sure, the priorities of price will still dominate vehicle buying but a younger base of customers will seek out new, youthful brands. This is where the picture could become even more interesting.

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