Kia Motors Considering Setting Up A Second Production Plant In India

Kia Motors India entered the Indian market back in August 2019 with the Seltos SUV. Since its launch, the company has received an extremely overwhelming response in the country. Kia Motors have been clear since the start that they have planned an aggressive sales strategy for the country, involving a new product launch every six months.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

The company currently has two products, the Seltos SUV and the premium Carnival MPV; both of which have managed to receive good responses. The company is now working on their next product, the Kia Sonet compact-SUV offering, while a budget-friendly MPV is also under consideration for the future.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

With such an aggressive product offensive for the Indian market, Kia Motors at least on paper have optimised their full production capacity at their Anantapur plant. According to Autocar India, the company is now looking at different locations in multiple states to set up their second production plant in the country.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

Kia Motors India has managed to achieve stellar sales figures in the Indian market, since its entry eight months back. The company has already managed to register close to 85,000 units of sales in India. Now with the arrival of the Sonet compact-SUV in the coming months, this is said to increase even further.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

Reports also suggest that the Kia plant in India will be the sole production hub for the Sonet SUV. This means that the company could be looking at a huge export potential of the compact-SUV from India. Kia Motors is said to have a sales projection close to 70,000 units per year for the upcoming compact-SUV.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

The Kia Sonet SUV was first unveiled at the 2020 Auto Expo, held in February. The concept version of the compact-SUV showcased at the Motor Show, received a lot of attention. The Kia Sonet once launched in India will be positioned below the Seltos in the sub-4 metre compact-SUV segment. It will rival the likes of its cousin, the Hyundai Venue along with other competitors such as the Ford EcoSport, Maruti Suzuki Vitara Brezza, Tata Nexon and the Mahindra XUV300.

Kia Motors Considering Second Production Plant In India: Begins Scouting New Site For India Expansion

Thoughts On The Kia Motors Evaluating A Second Production Plant In India

Kia Motors has had a huge success in the Indian market, within a short span of eight months. The FY 2020 sales showcases that the company has already achieved 1/3rd of its production capacity and is still going strong, with multiple other models planned for launch as well. However, the current COVID-19 pandemic would have definitely delayed their plans by at least a couple of months.

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Read more on: #kia motors
Article Published On: Saturday, April 25, 2020, 12:09 [IST]
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