The Indian automobile sector might be going through the worst slowdown in two decades, but that hasn’t seemed to have put the brakes on new entrant Kia Motors. The South Korean manufacturer entered the market just seven months ago and has few models on the ground, but has already crossed the 75,000 units sold mark in February.
Kia’s surging sales have been largely driven by its highly popular SUV model: Seltos. The automaker’s early success with its newest model, the multi-purpose vehicle (MPV) Carnival is only adding to its momentum, at a time when its rivals have seen consecutive months of falling sales.
Commenting on the record sales registered by the company, its managing director and chief executive officer Kookhyun Shim said that the good reception seen among customers for the new Carnival had contributed to crossing the milestone.
"Our latest offering – the Carnival – has been received well and this has helped to add to our sales numbers. This not only testifies the quality, reliability and design prowess of our vehicles but also gives a hint that India is evolving and Indian customers now don’t just settle but opt for better product offerings. It’s a proud moment for all of us at Kia Motors India who have worked diligently to achieve this feat," he said.
Over the past seven months, Kia Motors has seen India sales go from just over 6,200 units in January of 2019 to over 15,644 units in February 2020, of which 14,024 units were just the Seltos and the remaining 1,620 units comprising the new Carnival MPVs.
The rapid growth in its total sales at a time when the industry has been degrowing at double-digit rates has seen the company grab a significant share of the SUV market in India. According to sources, the company has secured a market share of over 7.5 per cent in the utility vehicle market, one of the segments to have done relatively better over the past few quarters.
Now, the company is only set to rapidly expand its offerings in the SUV and MPV segments. The South Korean major’s next major launch in India is set to be the upcoming new compact SUV -- Sonet -- slated to be launched during the second half of the year.
"I am confident that we will continue to carry this momentum through-out this year," said Shim. While the company showcased the Sonet earlier this year, the final commercial product is expected to carry a price of around Rs 7-12 lakh.