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Morris Garages and Kia Motors in India

The Indian automobile market, on one hand, is seeing declining sales from major auto manufacturers such as Maruti. However, on the other, there is also palpable excitement with regards to the entry and the future of new marquees MG Motor and Kia Motors. Both the companies are absolute newbies in the country, apart from the fact that a rebadged version of Tata Indica was launched in the UK in the year 2003. Whether the two will be able to survive the onslaught of Indian auto brands is a question that longs to be answered.

 

Both MG and Kia have carried out thorough research to set shop in India, having created strong entry strategies. MG is a brand started back in 1922, and has been enticing customers with the aura of grand British heritage ever since. It has undergone tough times, with the downfall of the company in 2006 and Chinese auto firm Nanjing Automobiles taking it over. The following year, another Chinese auto company SAIC Motors took it over from Nanjing and renamed it to MG Motor UK Limited. Sales of this firm in the UK rocketed 400% from 2008-17.

Kia, the relatively young brand, is an offshoot of Hyundai Motors, with the latter having 33.88% stake. It has adopted a one-of-a-kind entry strategy by offering a 7-year warranty on each of its vehicles. Advertisements, logos and banners have been made attractive, portraying it as a youthful brand. The company’s aim is to capture attention and then stimulate desire for its products. Kia has also played a major role in sports promotions, sponsoring cricket, tennis and FIFA events. It has also set up a dedicated online portal to forge customer relationships. Compared to the prices of other global auto players, Kia offers its cutting-edge products at lesser prices.   

Values

MG promotes the values of freedom and romanticism, luxurious design and high quality, while Kia talks about youthfulness, customer friendliness and affordability. In the Indian context, one can take the example of Honda cars, the success of which has shown that Indians are willing to pay a reasonable price for high quality and superior engines. Warranty is also a major selling factor in India, considering the 3-year warranty currently available.

For ensuring their success, what MG and Kia really need to do is invest in setting up service centres across the length and breadth of the country. For example, if Kia Seltos and MG Hector are the first two products from respective stables, then investment into states such as Himachal Pradesh and Uttarakhand would be great as many buyers would like to test their off-roading skills here. Of course, what it means that centres need to open in other states and cities too, but special focus just may be the key to future boom. And yes, localization needs to be achieved quickly so that customers do not have to endlessly wait for spare parts.