KIA, the second largest automobile company of South Korea is about to enter the competitive market of India. The company is known for manufacturing great compact cars and is planning to introduce both budget and premium segments in their Indian Market.
According to the memorandum signed between the Kia Motors and the State Government of Andhra Pradesh in April, 2017, construction of their manufacturing facility in Anantpur district will commence in the first quarter of 2018. The expected initial production date is set in the second half of 2019 with an annual production of 300,000 units.
Kia has made their debut at the Auto Expo 2018 organised in Delhi and showcased 16 of their global brands. The company is proposing to launch 5 different models in Indian market within the next 3 years. The set of five is comprised with four of its existing models along with their SP Concept introduced in the 2018 Auto Expo.
The SP Concept of Kia is a combination of Indian heritage and advanced technology, which can be considered similar to the Hyundai Creta SUV. They have given it a bold and stylish look with a combination of sophistication, breakthrough technology and high functionality. Kia will be manufacturing their SP Concept in the Andhra Pradesh facility for matching the contemporary Indian economy.
The company is planning to produce two of their models along with the SP Concept in the Indian facility to reduce the production cost for gaining competitive advantage in the tight market of India. Sportage and Sorento, the two CKD models are to be assembled in the same plant for cutting down the production cost.
The market entry strategy incorporated by Kia in India leads to the conclusion that the company is planning to make up for the late entry in the market and become a strong player by increasing their production and variants.
April 03, 2018