South Korean carmaker Kia Motors is planning to reach the global market with an entry-level electric car through India. It is a strategy that its parent company Hyundai had cracked in the same segment for the IC engine vehicles.
Kia is reportedly developing an small electric SUV in India targeting emerging markets. The south Korean company has been already chosen for the government’s production-linked incentive scheme for green vehicles.
Kia is trying to replicate the strategy that Hyundai found huge success with its popular i10 cars. It was first launched here and taken to other markets. It was the first global launch of a vehicle by a foreign manufacturer in India. It followed it up with the Grand i10 and later the compact SUV, Venue.
Kia has its task cut out in India
According to a report in the Economic Times, "the development work for a small SUV codenamed AY has kicked off and it is expected to hit the roads in 2025". The proposed SUV is based on a flexible platform, allowing Kia to launch a mass market entry level petrol SUV besides the EV, it added.
Kia, for the record, has no EV car in India as of now. But it is getting ready to foray into the EV segment here. The automaker has already trademarked the Kia EV6 nameplate, and recently filed five trademark applications for EV6 Light, EV6 Air, EV6 Earth and EV6 Water. The expectation is that the company might bring in the Kia EV6 electric crossover to India later this year.
Kia recently committed itself to releasing two new EVs a year starting in 2023, and hopes to build a full line of 14 EVs by 2027.
This roadmap builds on Kia’s successful ‘Plan S’ strategy first announced in 2020 to become a 'sustainable mobility solutions provider.' As part of this plan, Kia will invest close to $23 billion by 2026 in building EVs.
Kia will produce localised EV models in its factories in Europe, the US, China and India, with its facilities and personnel in South Korea serving as a hub of EV development and production, according to its President and Chief Executive Song Ho-sung.
Indian EV market is dominated by Tata Motors. But with the proposed entry by Mahindra and Maruti later, things are in for a churn. But when Hyundai and Kia join the race, it will become intense. MG has also announced that will come up with an entry-level EV for India. All these companies have already mapped out their respective EV strategies in India, even though the market here is still in a nascent stage.
In the IC engines market, India was amongst the fastest growing markets for Kia in 2021. It accounts for almost 10% of Kia’s global production and almost 8% of its total revenues.
