Kia India profits jump 150% to $250 million in FY2023, turnover hits $4.6 billion

South Korean car major Kia India continues to scale new peaks in the country and has posted a turnover of $4.6 billion, with profits breaching the $250 million mark for FY2023.

Kia India has seen its profits grow over 150% in FY2023 to Rs 2,122 crore versus Rs 825 crore profits registered in FY2022. Meanwhile, turnover rose 53% year on year to Rs 38,783 crore versus Rs 25,300 crore in FY2022.

A ramp up in domestic sales and increased demand in overseas markets, helped Kia India produce at almost 100 percent capacity, helping get the best out of its production facility at Anantapur in Anantapur. As per SIAM data, Kia India produced a total of 359,323 vehicles in FY2023, up 52% YoY (FY2022: 236,036 units).

According to the carmaker’s FY2023 financial filing with the Ministry of Corporate Affairs, sourced from business intelligence platform Tofler, a director's note stated: “During the year, the company sold 269,229 units in the domestic market and 85,756 units in the export market. Your directors are confident of achieving higher growth in sales in ensuing years.”

The strong performance was led by its range of SUVs – the compact Sonet, midsize Seltos and MPV Carens – which gave the company with its 269,229 UVs a 13% share of the fast-growing Indian utility vehicle market which sold a total of 20,03,718 UVS in FY2023. The year-on-year sales growth was 44% (FY2022: 186,787 units).

The Carens MPV, which sold 70,314 units in FY2023, has clocked cumulative sales of 123,573 units from launch in February 2022 till end-October 2023. 

Kia, which ranks among the top three SUV makers in the country over the past few years and the fifth UV maker in FY2023, overtook longstanding MPV champion Toyota Innova. The Carens sold 70,314 units to the Innova’s 55,574 units.

With its performance in FY2023, Kia India has become the fastest automaker to breach the Rs 30,000 crore turnover mark and Rs 2,000 crore in profits in about five years’ time. Interestingly, its sister company Hyundai Motor India drove past a turnover of Rs 60,000 crore for the first time in FY2023 but the maker of the Creta has been in India for over 25 years, which highlights the sharp rise of the Kia brand in India in just five years.

The company, which broke into the top 5 car makers chart in India in just three years, is now a key contributor to Kia globally. In CY2022, with 254,556 units, Kia India accounted for 9% of Kia’s global volumes. Kia India, however, is facing stiff challenge from a resurgent Toyota Kirloskar for the No. 5 position in the passenger vehicle car market with the latter's strong showing in the SUV space with new products like HyRyder and HyCross.  

Capacity expansion to 430,000 units to cater to demand

Kia commenced mass production in August 2019 with an annual production capacity of around 300,000 units. Through adroit productivity enhancements, it was able to produce over 350,000 units in FY2023. In early July 2023, to cater to growing demand, Kia India announced capacity expansion to 430,000 units, with the fresh capacity to come on stream by mid-2024.

While launching the facelifted Seltos in July, the company unveiled its mid-term vision called Kia 2.0 which targets growing its market share to 10 percent and also double its dealer network to over 600 stores. At present it has a network of 425 touchpoints across 213 cities and is focused on strengthening its footprint across the country to cater to growing demand in the hinterlands. Now, the company is readying itself to launch the new Sonet compact SUV in December 2023 to sustain brand excitement.

In July, Kia launched the Seltos facelift at Rs 10.90 lakh through to Rs 19.80 lakh for the top-spec automatic variants. The Seltos X-Line is priced at Rs 20 lakh (ex-showroom, Delhi.) 

Kia’s top management had assured that the product excitement for the company will continue as the new ground-up compact EV in India for global markets and an RV EV are likely to hit the roads in the next few years. This will help Kia expand its addressable market and bring in incremental sales. 

Tae Jin Park, Kia India’s managing director, had told Autocar Professional in February this year that the company is following a top-down strategy with its EVs.  

 "EV 9, EV6, a grounds-up EV designed for India and the world, and the RV EV – these are multiple options the company is working on to expand the model line-up. We are also exploring assembly of EV6 in India to make it more attractive," Park had said in July 2023.

In April 2021, Kia India reimagined itself in line with its new brand identity, ‘Movement that Inspires’ aimed at offering customers meaningful experiences backed by innovative products and services. Till date, Kia India has launched five vehicles for the Indian market – the Seltos, the Carnival, the Sonet, the Carens, and the all-electric EV6. 

Till end-FY2023 Kia India had completed over 889,000 dispatches from its Anantapur plant, including 693,000 domestic sales and over 196,000 units exported. With over 260,000 connected cars on Indian roads, Kia India is among the connected car leaders in the country, claims the company.

The brand has built a network of 425 touchpoints across 213 cities and is focussed  on strengthening its footprints across the country to cater to the growing demand in the hinterlands. 

ALSO READ: 
Car and SUV makers capture festive demand, October sales soar to record 391,000 units

UVs capture 57% of India's PV market in first-half FY2024