Kia brand could account for almost 30% of vehicles produced by Hyundai-Kia in India
- The launch of Kia in India is quite recent, as it started in August 2019. The Kia brand has been added to the Hyundai brand in this market with three different models, the first launched in August 2019 (the SUV Kia Seltos- 4.32 m long), the second launched in February 2020 (MPV Kia Carnival - 5.11 m long) and the third launched in September 2020 (the SUV Kia Sonet- 4.00 m long). The three models produced in India by Kia are therefore complementary, as the Sonetcan be considered as a B segment model, the Seltos as a C-segment model and the Carnival as an E-segment model. These three models are produced at the Hyundai plant in Chennai.
- Kia's production volume in India is increasing every month, except during the lock-down introduced in April 2020. This volume has increased from 5,000 monthly units in May 2020 to 10,000 in July, 17,000 in August and 25,000 in September. Kia has produced more than 165,000 cars since August 2019. The brand has found its market, which was not easy as the Indian market is 50% shared by Maruti-Suzuki and 15% by Hyundai. These two carmakers are leaders in India.
- Hyundai does not appear to have suffered too much from Kia's entry into the Indian market. The two brands coexist, except that the capacity of the Chennai plant is limited to 750,000 units per year. So Kia will have to take some capacities on Hyundai lines. In 2019, this plant produced 737,000 vehicles (including 55,000 Kia), against 713,000 in 2018 and 715,000 in 2017. At the current rate, Kia could represent 200,000 vehicles per year at the Chennai plant (100,000 Sonet and 100,000 Seltos models).
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