Kia India, which saw a 40 percent growth in its Indian market sales during the calendar year 2022 at 2.54 lakh units, is taking a pause after launching five vehicles in three years. The company will not launch any new models in the next 12 months as it looks to consolidate its business, Hardeep Brar, Vice-President and Head of Marketing and Sales, told Moneycontrol in an interview. He said Seltos, which is Kia India's bestselling model, will continue to account for 35-40 percent of its total business this year.
Edited excerpts:
You showcased a couple of concept cars at the Auto Expo. What is the feedback that you've got from customers for these models?
The Expo just got over and we are still collating the feedback from the visitors. So I think after we do a complete study, we'll be able to decide our next steps for these two models (Kia Concept EV9 and Kia KA4).
The Carens multi-purpose vehicle (MPV) has got a lot of accolades. Can you tell us why it could disrupt the market?
So basically it gives you the best of both worlds because the stance is quite upright. When you compare it with the existing MPVs, they are very functional and will not excite you. But when you look at the Carens, both from the outside and inside, it gives you a very luxurious feeling. Most of the cars in this segment are either operating in petrol or diesel, and we are giving three transmission options in this. And then again, you have a manual and automatic both in petrol as well as diesel. So it ticks all the right boxes.
Carens could disrupt the market more in terms of features and other factors, rather than price. Is that correct?
Absolutely. And if you see one model which is (positioned) above and one below (it), and if you look at the MPV segment, it has beaten both of them. While we operated for only 10 months in the market, we sold more than 65,000 cars. We are on course to sell 1 lakh cars on a cumulative basis by the first half of this year.
What were your total sales last year? And what is the target for this year?
We closed at 254,000 units in the calendar year (2022), which was a 40 percent growth over 2021. And of course, Seltos remains our number one model overall. This year the headwinds are there in terms of inflation and high interest costs, and then we have the global crisis as well. So it looks like the (domestic passenger vehicle) industry will grow by about 5 percent this year. We grew last year at almost double the rate of the industry. So irrespective of wherever the industry grows, we would like to double our rate of growth in the industry. That's how we look at it and we are very flexible. As far as volumes are concerned, we need to watch out how the industry is moving, because these are very early days and we could see a slowdown happening post festive season. So we will see how the industry moves and will change our game plan accordingly. But one thing is certain we would like to grow more than the industry.
As you said, Seltos is the maximum volume driver. So can you share the proportion of its sales to your overall numbers?
Last year, about 40 percent of our volumes came from Seltos. I think it should be anywhere between 35 percent and 40 percent only this year.
What is your game plan for this year? Do you intend to bring new products or facelifts of existing products?
As and when the facelift or new product is planned, we'll let you know because that is something we do not disclose in advance. But largely we will be consolidating our existing product portfolio because we have launched five products within three years, which is not done by any other manufacturer. We are moving the fastest (product rollout) in that sense. Also, we've been able to sell 6 lakh plus domestic numbers already within three years, and have also crossed 8 lakh units in total sales, which include exports. So, we are looking at consolidating these launches and growing our numbers (in 2023) based on these products. We will look at new products probably from 2024.
As e-mobility is gathering pace, do you intend to launch electric cars below EV6 such as EV4?
In India, we are looking at grounds up EV, which is specifically meant for India in 2025. We are still some time away. And globally Kia is developing 14 battery electric vehicles with an investment of $22 billion. We are exploring which of those 14 can be introduced in India. Right now, there is certainty on one, which will come in 2025. It will be a made-in-India electric car.
So until then, we don't see any all-new electric cars. Is that correct?
Yes, you can say that. As I said, we are exploring. So we can't say whether we'll be able to get it before or after. But right now the certainty is only about this 2025 one that we are focusing on.
Coming back to EV6, do you plan to get into SKD or CKD of this product?
No, we are not looking at that option because the volumes are not so high. So we would like to stick to the CBU strategies for the time being.
When are you restarting bookings for this model?
We have already opened the bookings. So yes, customers can come and book the cars.
The Union Budget is around the corner. So what are your expectations from the government?
So we would like the government to give more money into the hands of the people so that once the disposable income is there in their hands, it could be in whichever way, I think that will definitely give a boost to the industry.
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