The Indian automobile industry is seeing a growing demand for SUV. The desire to possess larger cars has also noticed in rural areas. This has resulted in a SLEW or SUV launch.
Kia India, which has 10-12 percent of its sales of rural markets, is expanding its reach among rural customers. The car manufacturer, which recently launched the spacious Carens Clavis, expects a general growth of 6 percent in CY25. Business line He spoke with Hardep Singh Brar, national marketing and sales head, Kia India, about growth plans, the introduction of his electric vehicle, rural growth and increased exports. Edited experiences:
What will be the growth projection for Kia India in CY25?
Last year, we sold almost 2,50,000 units. This year, we plan to reach approximately 300,000 units, pointing to approximately 6 percent growth. In addition, our goal is to increase our market share by 1 percent, which leads to approximately 7 percent at the end of the year.
Companies in all sectors have indicated a slowdown in urban areas. How do you see the Indian car market on CY25?
Yes, there is an urban deceleration. Rural markets are growing faster, partly because urban infrastructure (such as roads) does not keep the pace. We hope the industry will grow 2–3 percent this year. Growth in the first four months has been 3 percent, and we hope this will continue.
With rural areas, urban areas exceed, have the sales of Kia India see an increase in demand? What percentage of the company’s sales are from rural areas?
Rural markets represent about 10-12 percent of our sales, with the majority (85-90 percent) from urban areas. However, we are gradually expanding to rural areas as more rural customers aspire to own larger vehicles, such as SUVs. This growing interest in larger cars presents a promising opportunity to approach and increase our presence in thesis markets.
What is the plan to increase the presence?
We are focusing on the narrowest markets, since they sacrifice the growth potential compared to the largest cities, which are stagnating. Currently, we have around 490 exhibition rooms and we are aimed at reaching 500 at the end of the year. In addition, we plan to expand our presence of 300 cities to approximately 350 cities, significantly increasing our market footprint this year.
With the new releases, will Kia India increase the capacity?
This year, our goal is to sell 300,000 units nationwide and 25,000-30000 units for exports. Our current installation can handle up to 400,000 units, ensuring sufficient capacity to meet national and international demand without tension.
He has previously talked about price parity between electric vehicles and internal combustion motor vehicles (ICE). With the decrease in battery prices, how do prices foresee?
Yes, we anticipate the price gap between gasoline/diesel vehicles, and electric vehicles will continue continuous as battery prices fall. We are still finishing EV price details; We will share the same at the launch.
When will Kia launch the Clavis EV, an EV mass market?
The Clavis EV will be announced soon. They will be the first EV of seven places in the market, and customers are anticipating it a lot.
What consequences do you see for the Indian automobile industry with tariffs and geopolitical tensions?
There was uncertainty when the rates were announced, but they stop for 90 days. India is in a better position compared to the rest of the world, especially compared to China. Inflation is under control, rates cuts (0.5 percent) are positive and fiscal rationalization in the last budget is another positive. The layoffs seem to be late, but the hiring has not yet recovered. Moreoover, rural demand is strong, and a good monsoon is expected, which makes the perspective positive.
What new geographies are Kia India to increase exports from India?
We currently export to 100 countries and we have a strong presence. We plan to further strengthen the position, especially in the right driving markets.