Kia Motors, that sells cars in Europe, US, Korea and the very new China is all set to mull over various opportunities that it may grab by coming to India. Kia has been selling cars like ‘Sportage’ (a compact SUV), ‘Soul’ (crossover) & ‘Rio’ (hatchback).
Kia motors is carrying out the preliminary work of identifying land for production house and looking for suppliers. Kia sold out 3 million cars the previous year and plans to expand its growth by coming to India as the country thrives on being the 3rd largest car market globally by 2020.
The company had plans to invade the country since long but its expansion in other countries like the very latest China refrained it from executing the decision.
This invasion may take up to 3 years as Kia needs to take a lot of permissions and clearances from authorities. Kia, however, will set up a separate retail network from Hyundai in order to have a distinct identity. Something it has been following in the countries where both Hyundai and Kia are present.
Both the companies are likely to give a tuff competition to each other and will have no linkages in the front foot. The idea is to make both the companies compete aggressively with each other in order to get the best of the two. Harmonization on the account of procurement of raw materials and tie up with the suppliers may occur on the background.
The entry of Kia will make Indian market more competitive at a time when Toyota is also planning to drive in small cars developed and designed by Daihatsu. The Daihatsu cars, however, will be sold under the Toyota branding as the Japanese company looks to ride on its long-standing brand equity and retail network.
Principal Correspondent
Twinkle Jain
