The year 2019 is going to be a very exciting and important
one for the Indian automobile industry. The first half of the year has been
dominated with new car launches the likes of Tata Harrier, Mahindra XUV 300;
we have also seen the much-loved Honda Civic
in an all-new avatar marking its re-entry into the Indian market after a gap of
7 years. Well...if you thought the first half of 2019 was great, then you are
certainly in for an awesome second half! In the second half of 2019, India is
going to witness the arrival of 2 global car brands – Kia and MG Motor. Yes,
you read that correctly…South Korea’s second largest car manufacturer Kia is
all set to enter the Indian market in mid-2019. We look at the brand and help
understand what Kia has in store for the Indian car buyer.
The origins of Kia
can be traced to the Kyungsung Precision Industry which started off as a
manufacturer for steel tubing and bicycle parts. The Samchully, Korea’s first domestic bicycle was manufactured in 1951
by Kyungsung. Kyungsung changed its name to Kia Industries in 1952 and went on
to build Honda-licensed motorcycles, Mazda-licensed trucks and cars. In 1981,
Kia was forced to stop the production of cars as a result of industry
consolidation enforced by the then South Korean government. Five years later,
Kia re-entered the automobile industry with Ford as its partner. Kia entered
the USA market in 1992 and there has been no looking back since! Kia cars
quickly went on to become very popular amongst American car buyers. The USA
remains a very crucial international market for Kia to this day. Kia became a
victim of the 1997 Asian financial crisis and filed for bankruptcy. This led to
Hyundai acquiring a 51% stake in Kia. Both Hyundai and Kia are sister brands
(Hyundai being the owner of Kia) but, both the brands have their own unique
identity, philosophy. On the one hand, Hyundai is a global car brand which
targets a more mature, elder age group of customers who lay emphasis on good,
elegant styling, efficient performance and most importantly value for money. On
the other hand, Kia is a global car brand which targets the youth, new age car
buyer. Kia is a more premium brand in comparison to Hyundai – with more
sporty and modern styling, more inclined performance, equipped with the latest
technology and features Kia cars appeal to the new age young car buyer. Being a
premium brand Kia commands a slightly higher price when compared to Hyundai, a
Kia car is one of the best you can get in case you are looking out for a
premium car on a budget.
Hyundai and Kia share common vehicle platforms
and components, yet there is a noticeable difference between cars of both brands with respect to design language, philosophy. Hyundai cars are known for
their fluidic and yet elegant free-flowing design, this is a rather evergreen
design which appeals to all ages. In India Hyundai cars have been very popular
with customers and score well in the design department. Kia has a different approach
to car design, Kia follows a sporty, modern design language which would appeal
to the new age young car buyer. Globally Kia cars have won many accolades for
amazing design, Kia would be banking on the same to achieve great success in
the Indian market. Being a premium brand Kia has a very good interior, the
build quality, fit and finish, materials used is quite good and offers great
value for the customer at a price that would not break the bank. Kia offers a
very extensive and capable range of petrol, diesel engines along with manual
and automatic gearboxes as part of their powertrains. A lot of these powertrains
are commonly shared with sister brand Hyundai. With a lot of market research and
customer feedback, Hyundai has been very successful in understanding the Indian
consumer and offering value-oriented products for the Indian market. Over the
years Hyundai has developed a very strong marketing network across India, Kia
will have the advantage in the Indian market as they seek to leverage this network
towards a great impact in the market. Kia has a very large model range
globally, with cars starting from hatchback to a large premium SUV…Kia has it
all! This is a win-win situation for both Kia and the Indian consumer. Kia gets
to offer their cars across a wide array of segments at the same time launching
a multiple-segment offensive against competitors. The Indian customer gets a
lot more choice across segments while choosing the next perfect car for him/her.
At the New Delhi Auto Expo, 2018 Kia showcased 15+ models from their global
line-up, the visitors at the event were amazed by the cars and the market
remains very excited and positive about Kia entering India this year. Superb
times ahead! Kia has not yet confirmed the list of car models which will be on
offer for the Indian market. However, Kia has communicated that they will be
entering the Indian market with a compact SUV (based on the Kia SP Concept) sometime in mid-2019.
They say you should
strike the iron when it is hot…Kia is doing exactly this with the Indian
market. India is one of the largest car markets in the world, most car buyers
are the youth. With an increasing disposable income, product awareness and need
for a premium, tech-loaded and most crucially value for money product; the
Indian market has all the ingredients needed to make Kia’s time in India a very
successful one. Will Kia’s power surprise and win the hearts, minds of the
Indian car buyer? We certainly think so!
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