Kia India targets 20 per cent sales growth in 2025
Korean carmaker Kia aims to achieve a 20 per cent growth in sales volume in India next year, targeting sales of approximately 3 lakh passenger vehicles (PVs). The company expects to conclude the calendar year 2024 with sales of around 2.5 lakh units.
According to Hardeep Singh Brar, Vice President & Head of Marketing & Sales at Kia India, the projected growth will largely be driven by its newly launched compact SUV, the Syros. Additionally, Kia is reportedly planning to introduce a mass-market electric vehicle (EV) in 2025.
Brar anticipates overall industry growth in 2025 despite cautious projections by other manufacturers and industry experts.
“PV demand in 2024 was impacted by a temporary pause in government expenditure due to the general elections in May-June and layoffs in the IT sector. With layoffs behind us and government spending expected to rebound, the industry could grow at a healthy pace of 5-10 per cent in 2025,” he said.
Kia expects to outpace industry growth, given its strong presence in the compact and mid-SUV segments, as well as multipurpose vehicles (MPVs). Unlike sedans and hatchbacks, these segments have remained resilient. Kia currently holds a 15 per cent market share across these segments and expects the Syros to boost its share to 20 per cent within a year.
However, Kia expressed concerns over the potential increase in GST on used EVs from 12 per cent to 18 per cent, emphasising that such a move could hinder the Indian automotive industry’s electrification journey. Currently, new EVs are taxed at 5% GST.
The company also revealed that its R&D centre is studying CNG and hybrid technologies, which are gaining popularity in India. Despite this, Kia has no immediate plans to launch CNG-powered vehicles or hybrids.
On Thursday, Kia unveiled the all-new Syros SUV. Bookings for the sub-four-metre SUV will begin in January, with deliveries starting in February 2025. The Syros’ pricing is expected to be announced at the Bharat Mobility Show next month.
Built on the K1 platform, which also underpins Kia’s Sonet, the Syros will feature a 1.0-litre turbo-petrol engine with a six-speed manual or seven-speed DCT, as well as a 1.5-litre diesel engine paired with either a six-speed manual or a six-speed automatic transmission.