Kia Motors to plunge into Indian small car market, after China, US sales dip - Hindustan Times
close_game
close_game

Kia Motors to plunge into Indian small car market, after China, US sales dip

Bloomberg | ByP R Sanjai
Mar 07, 2018 04:21 PM IST

About a dozen companies already make small hatchbacks in India where profit margins are relatively low, a key factor that led General Motors Co. to announce an exit from the market last year.

Kia Motors Corp. will take a plunge into India’s crowded small car market.

While Kia is set to begin production by the middle of next year at Anantapur in southern India, more competition is coming(Reuters File)
While Kia is set to begin production by the middle of next year at Anantapur in southern India, more competition is coming(Reuters File)

The affiliate of South Korea’s Hyundai Motor Corp. plans to make three or more models in the compact hatchback and sport-utility vehicle segments within three years of starting production in 2019, Manohar Bhat, head, marketing and sales at Kia’s local unit said in an interview. Hatchbacks account for almost two-thirds of India’s car market, which is poised to become the world’s third largest by 2020.

Hindustan Times - your fastest source for breaking news! Read now.

About a dozen companies already make small hatchbacks in India where profit margins are relatively low, a key factor that led General Motors Co. to announce an exit from the market last year. Success in India is essential for Kia after losing ground in China due to political tensions and in the U.S. where consumers are increasingly lapping up big SUVs.

“We view India as the next untapped market with a huge potential,” Bhat said.

While Kia is set to begin production by the middle of next year at Anantapur in southern India, more competition is coming. Chinese carmaker SAIC Motor Corp. is also setting up its first car manufacturing plant in India to sell the MG brand from 2019. France’s PSA Group is also planning to produce and sell in India.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On