Kia India to expand capacity to 430,000 units by mid-2024, targets 10% growth in 2023 

Korean carmaker looks to up the ante with facelifted Seltos; reveals new product strategy and plans to expand retail network to over 600 showrooms across India.

By Ketan Thakkar and Hormazd Sorabjee  calendar 05 Jul 2023 Views icon8769 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Kia India to expand capacity to 430,000 units by mid-2024, targets 10% growth in 2023 

Kia Motors India, which launched the facelifted Seltos midsize SUV on July 4, has kicked off its next phase of expansion in India. The Korean carmaker, which rolls out its products from its scalable 300,000-units-per-annum plant in Anantapur, Andhra Pradesh, is currently in the process of expanding its manufacturing capacity to 430,000 units per annum.

Already operating at close to 95-100% capacity, Kia expects the facelifted Seltos to help further expand volumes in the domestic market as well as exports. In FY2023, Kia India sold 269,229 units, up 44% year-on-year (FY2022: 186,787 units). This was its best performance for a fiscal since its market entry in 2019. 

Tae Jin Park, MD and CEO of Kia India told Autocar Professional the additional capacity beyond 350,000 units will come up by middle of 2024. "The market growth is slowing down . . . we plan to grow by 10% in the current calendar year. We are hoping for the new Seltos to bring in increased volumes," said Park.

Sales of the Seltos, which accounts for more than half of Kia India's volume, had slipped to about 5,000 to 6,000 units in recent months amid increasing competition. 

Kia India aims to ride the growing demand for midsize SUVs with the new Seltos and is targeting monthly sales of over 10,000 units. 

With the facelifted Seltos (internally called Seltos PE), the company aims to once again achieve five-digit sales or over 10,000 units a month, which will help Kia outpace the market, which is slated to grow in single digits. 

The Seltos remains a key model for Kia globally and accounts for one of every 10 units sold. In India too, the midsize SUV continues to account for 33% of the overall market. 

Kia India, on Tuesday, announced its new mid-term plan coined ‘Kia 2.0’ which envisages growing its market share to 10% by 2028 and doubling of the retail network to 600 stores across the country. 

All-electric EV9 SUV, which is part of the Kia 2.0 transformation strategy, is slated for an India launch in 2024.  

New product game-plan for India 

Meanwhile, as part of its new product strategy, Kia has announced plans to launch the new grounds-up compact EV in India as also for global markets, and an RV (recreational vehicle) EV in the next few years. This will help the company expand its addressable market and bring in incremental sales. 

According to Park, the company is following a top-down strategy with EVs. “We will start EV6 with high premium EVs, and the next year, we also want to bring the EV9, which is really high (in the top end category) in the EV products. We are thinking and analysing how we can make the CKD for the EV 6,” he concluded.

Two Kia EVs will be locally manufactured in India in 2025': Kia India MD

Seltos drives past 500,000 sales in India within 4 years of launch

Hyundai recalls 1,744 Ioniq 5 EVs to inspect integrated charging control unit

auther Autocar Pro News Desk calendar15 Jun 2024

Hyundai Motor India has cited a “potential issue in the integrated charging control unit (ICCU), which may discharge the...

Tata Motors looks to tap growing trend for personalisation in cars and SUVs

auther Autocar Pro News Desk calendar15 Jun 2024

The car and SUV maker expects the trend of mass customisation to transition into each car being a unique product, enable...

Hero MotoCorp to increase its stake in Ather Energy

auther Autocar Pro News Desk calendar07 Jun 2024

Hero MotoCorp, which is an early investor in Ather Energy and has been a part of the Bengaluru-based smart electric scoo...