‘Price war has already started for SUVs’
NEW DELHI : The SUV market in India, particularly in the popular mid-SUV category, is experiencing a surge in competitive intensity, triggering a price war, Kia India chief executive and managing director Tae Jin Park said on the sidelines of the launch of the new, mid-life facelift of its best-selling SUV Seltos. Kia is investing heavily to expand its capacity, sales network, as well as product development, in India, and is ready to take a hit on profitability to grow its market share to counter a series of launches of aggressively-priced vehicles by Japanese and Indian automakers. Kia is betting on doubling its market share from 5% to 10% within five years, and launch hybrid products in the next two years.
It plans at least two IC-engine and 2 EV model launches in five years, he said. Edited excerpts: To reach our target market share of 10% of the passenger vehicle market in India, we are investing to develop new models specifically for the Indian market, like the RV slated for a 2025 launch, both EV and IC- engine variants. We will also invest to expand production capacity and dealership network to increase sales reach.
We produce 350,000 units a year today. We will reach 435,000 units capacity by 2025. We are only focusing on the SUV segment in India.
Our target is to reach 10% market share of the total passenger vehicle market and over 25% in RVs (recreational vehicles) or SUVs. Based on estimates, by 2030 the Indian passenger vehicle market will be 5 million, out of which 20% or 1 million will be EVs. We want 10% market share in each segment —ICE and EV by 2030.
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