The Indian automotive industry sees an increasing demand for SUVs. The desire to own larger cars has also joined in rural areas. This has led to a number of SUV starts.
Kia India, which has 10-12 percent of its sales from rural markets, extends its reach among rural customers. The car manufacturer, who recently launched the spacious Carens Clavis, expects a total growth of 6 percent at CY25. Businessline spoke to Hardeep Singh Brar, National Boss for Marketing & Sales, Kia India, about the growth plans, the introduction of his electric vehicle, rural growth and increase in exports. Edited extracts:
What will the growth process for Kia India be in CY25?
Last year we sold almost 2,50,000 units. This year we are planning to achieve around 300,000 units, which aims to grow around 6 percent. In addition, we want to increase our market share by 1 percent and bring it to around 7 percent by the end of the year.
Companies in sectors have pointed out a slowdown in urban areas. How do you see the Indian automotive market in CY25?
Yes, there is an urban slowdown. The rural markets grow faster, partly because the urban infrastructure (like roads) does not keep pace. We expect the industry to grow by 2 to 3 percent this year. The growth in the first four months was 3 percent and we assume that this will continue.
Has Kia India’s turnover exceeded urban areas with rural areas? What percentage of the company’s sales come from rural areas?
The rural markets make up about 10-12 percent of our sales, the majority (85-90 percent) come from urban areas. However, we gradually expand into rural areas, as more rural customers strive to own larger vehicles such as SUVs. This growing interest in larger cars offers us a promising opportunity for us to use and increase our presence in these markets.
What is the plan to improve presence?
We focus on expanding into smaller markets, since compared to larger cities they offer stronger growth potential that stagnate. We currently have around 490 exhibition rooms and want to reach 500 by the end of the year. In addition, we plan to expand our presence of 300 cities to around 350 cities, which significantly increases our market for the market this year.
Will Kia India increase capacity with the new starts?
This year we would like to sell 300,000 units in Germany and 25,000 to 30,000 units for exports. Our current system can take over up to 400,000 units and ensure sufficient capacity to meet both domestic and international demand without stress.
In the past, they talked about the price parity between electric vehicles and internal combustion engine (ICE). How do you predict prices for the battery prices?
Yes, we expect the price gap between petrol/diesel vehicles, and electric vehicles will continue to narrow down if the battery prices decrease. We still put the EV price details off. We will share the same at the start.
When will Kia launch the Clavis EV, a mass market EV?
The Clavis EV will be announced soon. It will be the first EV-U on the market and customers expect it very much.
What consequences do you see for the Indian automotive industry with tariffs and geopolitical tensions?
There was uncertainty when the tariffs were announced, but for 90 days. India is in a better position compared to the rest of the world, especially compared to China. Inflation is under control, interest reductions (0.5 percent) are positive and control rationalization in the last household is another positive. Leasts seem to be back, but the attitude has not yet taken up. In addition, rural demand is strong and a good monsoon is expected, which makes the outlook positive.
Which new geographies would Kia India want to increase exports from India?
We are currently exporting to 100 countries and are strongly represented. We plan to further strengthen its position, especially in the markets with right -hand drive.