There is nothing that can fight the attraction trap that the Indian auto industry has set for the global car manufacturers. One by one, they are all giving in to the temptation of trying their luck in the Indian market. And the latest one to join the party is South Korea’s second-largest carmaker, Kia Motors.
Kia Motors is planning to enter the fast growing Indian car market, and in very aggressive way at that. The Korean company will also set up a manufacturing facility in India, a person close to the company has revealed. Kia Motors, which is partly owned by South Korea’s largest carmaker Hyundai Motors, plans to bring in a range of small cars, hatchbacks and entry-level sedans in the initial phase. Later, the company will expand its business and bring in some compact sports utility vehicles too.
Kia is renowned for its sleek yet aggressively priced vehicles. So far, the European car market had proved to be the goldmine for the Korean car maker, but since car demand is shrinking in the European market, Kia wants to shift its base to the Asian markets before it’s too late. “It is hunting for alternate markets after the 2008 financial meltdown,” the source said.
When we got in touch with one of the Kia officials, he revealed that the company was in the early stages of conducting a feasibility study for a possible entry in the Indian market. “We are still a long way from making any decision,” he added.
However, we have some reliable information that Kia will launch the popular hatchback Picanto and Proceed first, before heading on to bringing its top-selling sedans Forte and Rio. While the Kia sedans will be competing with some the very well selling sedans in the country, including Honda City, the small cars would fight the battle with Maruti Ritz and Hyundai i10.
Kia also plans to roll out the compact SUVs Soul and Sorento. Now, doesn’t that sound like some warning bells for SUVs like the Mahindra Scorpio and Maruti Suzuki’s Grand Vitara? Indian car sales zoomed up by 25% and touched the milestone of 15.26 lakh units for the financial year that ended this March. The Indian economy is booming and the car industry is the one leading the way.







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