Q. Kia has around 7% market share in India. How do you plan to increase it further?
Our current market share of 7%+ validates our commitment to delivering products that resonate with Indian consumers. Our future plans involve relentless innovation to address the unique demands of Gen-MZ, alongside a strategic expansion of our dealership network and service centres to ensure the widespread accessibility of our products. We are now available at 432 touchpoints across 213 cities and we will continue to grow further.
Q. What are your mid to long-term goals?
We want to continue increasing our market share to double digits in the next 1-2 years apart from strengthening our brand love and purpose. Additionally, we plan to expand our product portfolio by introducing more RVs (SUVs+ MPVs) in the mid-term.
Q. How is the electrification strategy panning out for Kia in India?
We are making great strides with our electrification strategy in India, and it is perfectly aligned with the vision of the Government of India. Our globally acclaimed EV6 was launched last year, and it demonstrated our unwavering commitment to providing cutting-edge, premium electric vehicles to Indian consumers.
This year, we are aiming to grow the business in this category. For this, we are strengthening our charging infrastructure and R&D capabilities significantly. We have high hopes of replicating Kia’s global EV success in India as well.
We are excited about the future of EVs in India. Indian consumers are looking at value-driven experiences and are prioritizing them over costs. This is a very positive trend for a premium carmaker like Kia.
The premiumization wave in the auto industry is here to stay where Gen-MZ will wait for their preferred choice and want the best product in that segment. Our premium electric offering, the Kia EV6, is leading this wave, with the top variant accounting for an impressive 98% of its total sales.
As one of the best-selling premium EVs in CY22, we’re confident in our ability to continue dominating the Indian market for Premium EVs. We’re thrilled with the healthy bookings we’ve seen since we re-commenced bookings for the EV6, and we’ll keep pushing forward with our commitment to electrification in India.
Q. You have one premium electric vehicle EV6 which has been received well in the market. What are your plans for bringing new products? What kind of investments are you putting in electric vehicles?
We have already captured a strong double digit market share and are dominating the category. We emerged as the best-selling premium EV in 2022 despite being a new brand and stiff competition from legacy established peers who have led the segment.
At the Auto Expo 2023, we announced our ambitious plans to invest INR 2000 crore towards research and development, infrastructure development, and manufacturing of electric vehicles in India. This investment is aligned with our global plans to introduce 14 different battery electric vehicle (BEV) models across various markets, and some of these models are being considered for launch in India as well.
Our Anantapur manufacturing facility, equipped with advanced technology, is ready to roll out these electric vehicles. We’re confident that this investment will not only contribute to the growth of the EV market in India but will also support the country’s overall sustainable development goals.
Q. What is the growth potential in the premium EV segment?
The future is electric, and we believe that for the next few years the approach will be balanced between ICE and electric. We firmly believe EVs & ICE are not rivals but two different technologies that complement each other. We are on track with our EV strategy in India and are going to launch a ‘Make in India’ affordable EV in 2025.
As Indian consumers become more environmentally conscious, comfortable with EVs and prioritize experience over costs, premium carmakers have a big opportunity to acquire more and more customers and make them our brand ambassadors. Besides, the Indian Government’s initiatives like FAME to encourage EV adoption and the discovery of lithium deposits in India would further accelerate the growth of EVs in the near future.
Q. What is your target for EV sales’ share in your total revenue?
Our long-term strategy is to replicate our global success in the electric vehicle (EV) market by focusing heavily on the development and launch of new EV products in India. We are aiming EVs to contribute 9% of our total revenues globally by the end of 2023, and we aim to achieve similar growth in the Indian market in the next few years.
Q. Please elaborate Kia’s overall strategy for developing an electric vehicle ecosystem.
We remain committed to providing convenient and accessible charging options for our customers. For this, we are expanding the EV charging infrastructure in India. We have already installed India’s fastest ‘240kWh’ charger for EV passenger vehicles at its Kochi dealership while a 150kWh charger has been placed in Gurugram last year.
We have also expanded our EV dealership footprint from 15 select dealerships across 12 cities at the time of launch last year to 60 outlets across 44 cities for the year 2023 and accordingly, the charging coverage also expands significantly.
Q. What about the localization of EV products in India?
We are planning to localize the production of EVs in India, which will help in reducing costs and increasing efficiency. Hence, we have already made a commitment to localizing our EV production in India. Kia’s first locally manufactured EV – an RV body style to be launched in 2025 – is a positive step towards achieving this goal.
