Will Maruti Suzuki Face A New Threat Soon From The South Koreans?

Maruti Suzuki continues to be the biggest player in the Indian market when it comes to small, or compact cars. The trend is slowly changing and one good example is how the Renault Kwid is reflecting good sales numbers.

Good sales of the Kwid is something Maruti is worried about, and now, the South Koreans are bringing more worries to Maruti Suzuki. Kia Motors has been scouting for land in India to set up a production facility, and start selling cars in India.

Kia Motors' R&D facility has been set up in Hyderabad, and is focusing on developing localised products. This move will help the carmaker price its vehicles very competitively, which in turn, could affect Maruti's sales.

Kia is planning to appeal to the mass market with products designed according to the taste and needs. Kia could fill in the cost competitive compact vehicle segment for Hyundai, since this is the biggest segment for carmakers in India.