The South Korea’s second largest car maker Kia Motors is muscling its strength in India by installing a manufacturing unit. Kia is jointly owned by Hyundai, the foremost car maker of South Korea. Kia will roll down hatchbacks, entry-level sedans, compact cars followed by compact SUVs. Kia is synonymous for its high cost range and equally high esteemed versions till recently doing good show in Europe. Of late its market in Europe is on the decline and hence the diversion to Asian market, particularly India. Kia has been searching for the potential source since the economic recession. However, anything will materialize only after a comprehensive feasibility study, said an official of the company. The anticipated models may include Picanto and Proceed hatchbacks and Rio and Forte sedans.
Kia intends to counter Honda City in sedan range while the target for small cars will be Maruti Ritz [images] and Hyundai i10 [images]. In SUV range there will be Soul and Sorento to face Mahindra Scorpio [images] and Maruti Grand Vitara [images]. The year 2009 promised some good signs to the Indian car market with 25% growth and sale of 15.26 lakh units and the market seems to grow further this FY. Kia, as the global partner for Hyundai, has grabbed the sale of 1.6 million vehicles made from 14 major units spread worldwide including Australia, China, Germany and the US. Kia’s earlier attempt to roll down its products in India, four years ago, could not materialize due to poor response to it.
The present venture is to have a concrete feasibility study by a global consultancy firm. Kia took the leaf of entering the Indian market based on the consistent show of Hyundai, which has become the second largest car maker after Maruti Suzuki. Kia believes that the entry into India will boost its global trade along with the product range from Hyundai. The Hyundai Kia Automotive Group is ranked as the fourth largest car maker in the world, along with Toyota, Chevrolet and Volkswagen. Hyundai, for its own sake, hopes to overtake Maruti if Kia’s entry materializes.