India is one of the hottest and fastest emerging global car markets in the world today. What makes the Indian market so exciting and attractive for car manufacturers to come and set up shop here are – a large pool of young car buyers, an influx of technology which has created awareness amongst the youth and new age of Indian car buyers towards buying better quality cars, higher disposable income and increase in spending power on cars. With the advantage of a very young population, India has an edge over other emerging markets. Indian car buyers have been fortunate to have a wide array of cars from brands across the world to choose from. Top brands in the automobile world are reaping the rewards from the Indian market. With constant growth, demand, and opportunity the Indian market offers car manufacturers…there is always room for new entrants. The latest brand to enter the Indian market is South Korean car giant Kia. The Hyundai owned brand is expected to begin its Indian operations in 2019, with its first car slated for launch in 2019 Diwali. Want to find out what Kia has in store for the Indian car buyer? Read on to find out more!
The origins of Kia can be traced to the Kyungsung Precision Industry, which made bicycle parts in Korea. They gradually went on to make Korea’s first bicycle – the Samchully. Kia ventured into the manufacturing of vehicles such as cars, bikes, trucks etc. In 1997, Kia fell victim to the financial crisis that had gripped Asian markets. Korea’s largest car manufacturer Hyundai saw this opportunity and swooped in to acquire a 51% stake in Kia. Korea’s second largest car manufacturer Kia is world renowned for their stylish, innovative design. The Indian market has an abundance of cars, Kia hopes their design will play a key role in determining the brand’s success in India. Apart from having a top-notch design, Kia cars are very youth-oriented and have a sporty flair. This is a very good thing as far as India is concerned. Kia realizes the same and wants to have a long-term presence in the Indian market, with plans to be among the top 5 manufacturers in the country within the next 3 years. Plans are ambitious, but this ambition is very good for Indian consumers. In return, this means there will be an influx of even more competitive products in the market. The entry of Kia will certainly make competitors up their game – increasing the quality of cars sold and better value for money. Back in February at the New Delhi Auto Expo 2018, we witnessed the Kia model range in all its might. At the Kia pavilion, the brand had displayed its entire global range of cars for the Indian public to view. This was very important for Kia as it gave India a feel of what to expect from the Korean car giant. For any brand entering a new market, understanding the market is very important. Kia will be aided in this process by its sister brand Hyundai. Hyundai has been in the Indian market for many years, consistently among the top performing brands in India. The Indian market is a very price sensitive one where customers are more concerned with the VFM (Value For Money) provided by the car rather than power output, technology, and other aspects. Hyundai has understood this and made this their strength in the Indian market, hence propelling them to be one of the most successful and loved brands in the car brands in the country. Both Hyundai and Kia share common platforms and most components, parts etc. across their model ranges. This will prove cost-effective for Kia in terms of manufacturing, allowing Kia to reduce the cost of production and offer a highly competitive price for sale in the market. One might ask how are Kia and Hyundai positioned differently considering the similarity the brands have? Hyundai, on the one hand, is a modern car brand offering a range of affordable cars for the masses with an emphasis on design, features, technology etc. On the other hand, Kia is a brand that brings premium cars at an affordable price catering to daily usage. Kia prides itself on innovative design, styling, premium, feature, technology loaded cars. Cars such as the Kia Rio, Picanto are very similar to their Hyundai counterparts – the Grand i10, Elite i20. However, when compared side by side…the differences can be seen in styling, design. Kia plans on bringing various models to the Indian market, with the Rio, Sportage, Picanto most likely to make the market along with the SP concept SUV. The SP concept is a car that has been designed especially for Indian conditions. Many of the enthusiasts would love to see the Kia Stinger on our roads, but we don’t expect Kia to bring the Stinger anytime soon.
Indians don’t know much about brand Kia, that remains to be an area of concern for the Korean car giant. The top brass of Kia is confident brand building exercises will help strengthen them. Kia has also started dealer roadshows and meets to set up their sales network and familiarize prospective dealers in understanding the Kia way. In a time when the Indian car buyers are moving towards a youthful, tech-laden and premium product, the arrival of Kia will certainly spice things up in the market. How Kia will perform in the Indian arena remains to be seen, but one thing is for sure the Indian car buyer is in for very exciting times ahead!
