Here's how Kia Motors plans to do business in the Indian market.
Kia has officially announced that it’s going to set up a production unit in Andhra Pradesh in order to begin operations in India. Tentatively, production at Kia’s India facility will commence only after 2019, meaning there’s a lot that needs to be done. But, that’s not to say that Kia is not prepared to take the task at hand. The Korean manufacturer has seemingly done its homework well as it is straightaway gunning for the top players in India. And here’s how it plans to do that,
- You might already know that Kia and Hyundai are sister brands, however, both the firms will run independently in the country. The only thing that’ll be shared between the two is technology.
- Kia’s initial plan is to manufacture 3,00,000 units annually at its production unit in India. Initially, the firm will start with 30 per cent to 40 per cent parts localisation, which will eventually go up to a full 100 per cent. Like Hyundai, Kia will also be exporting cars made in India to overseas markets.
- Kia plans to open 300 dealerships across the country, although it’ll be done in a phased manner, over a span of three to five years after the firm commences operations in India.
- Currently, Kia and Hyundai share seven vehicle platforms with each other. However, both the manufacturers’ products differ from each other. Kia is expected to pitch its offerings as more premium compared to Hyundai cars in India as a result.
- Kia’s initial plan includes launching a compact sedan, a compact-SUV and a halo model – which will be a CBU – in India.
- Kia offers a 10-year warranty plan on its cars in the US, whereas in the UK its cars come with 7-year warranty as standard. For India, the firm plans to introduce a 7-year warranty plan as well.