Kia Motors To Launch In India

By By: Vicky.in

The success path of the earlier entrant from South Korea, Hyundai, has envisaged the group member Kia Motors for formal entry into the Indian car market. The process will begin with the land acquisition through negotiations with the respective governments of Tamil Nadu and Gujarat. Though no confirmation could be gathered from the company sources, the plan may materialize at any time. The company"s International Public relations team official confirmed the move but declined to elaborate.

Kia Motors is on the rapid move to enter the potentially growing market without much delay. The company is fully aware of the growth rate accumulated by the local players like Maruti, Tata Motors and the global players like General Motors, Hyundai and Volkswagen in the Indian market. Kia Motors is the second largest carmaker in its own country. It has derived a growth of 28% in the last month with a sale of 19,08,096 units. If the company drives into the Indian market, there will be models on compact, entry-level sedan and compact SUVs. Kia Motors is in the fore with its hatchbacks Picanto, Proceed, and Rio and Cerato sedans.

Also on the cards are the SUVs like Soul and Sorento to face the challenge from Mahindra, Tata, Ford and Toyota. The name of the company represents the concept 'to arise to the world from Asia" and the integral motif behind the business is its eccentric designs. Kia is almost familiar in the great markets of China, Europe and the US.

Kia is one step ahead in its venture with the back up from Hyundai in India. The latter is a close rival to Maruti, to be the second largest manufacturer in the domestic market. Hence deriving a lot of synergies will be an easy sailing for Kia in the Indian market. Procuring components and material will not pose any sort of complications and will be on the lesser side of investment. Further hooks will be logistics and operations at back-end. The only drawback will be the branding, as Hyundai is keen on retaining its individual branding. The dealers will have the separate identity for both Hyundai and Kia brands. The manufacturing plants too will be separate unlike in other markets, due to the capacity constraints faced by Hyundai currently.

Kia has been on the shadow of Hyundai for the past twelve years after the recovery spree from the financial crisis faced by Kia Motors. The Tiger Face design on the front end of the models is a joint practice between the two companies, from which Kia intends to get relieved with its own design.

Article Published On: Tuesday, December 14, 2010, 13:42 [IST]
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