Indian Economy News

Kia Motors eyes full capacity utilisation in India with slew of new models

  • IBEF
  • January 20, 2020

Kia Motors, a South Korean automaker intends to launch new models at regular intervals in India as it aims to fully utilise its present installed production capacity of 3 lakh units by March 2022, a senior company official said.

The company witnessed a good start in the country with its first product Seltos and thus, plans to introduce two more models this year.

It will drive in luxury multi-purpose vehicle Carnival at Auto Expo, followed by a compact SUV later during the year.

Also, the company plans to launch two more products in next year as well.

"We have already stated that we will keep introducing a new model every six months. Our first goal right now is to fully exhaust the installed production capacity," said Kia Motors India Head Marketing and Sales Mr Manohar Bhat.

He added that it should take around 4-5 models from the company's stables to reach the target in 2022.

The company’s manufacturing facility present in Andhra Pradesh has an installed production capacity to roll out 3 lakh units per annum on a three-shift basis.

Currently, only two shifts are been operated at the plant by the company.

Mr Bhat also added that company plans to create new segment with the Carnival model.

"Carnival is going to be our flagship model in India. There is no product like it in the country right now. It would meet the evolving needs of elite customers in the country," Mr Bhatt further added.

The Carnival will be powered by a 2.2 litre diesel engine with a claimed fuel efficiency of 13.9 km per litre.

"We will redefine the market-place with this product as well as we did with Seltos. It will have BS-VI compliant engine right from the start," he said.

He further added that the company is not focusing at it from volume point of view but wants to showcase its prowess in terms of quality and luxury, answering the question of sales expectation.

The compact SUV model, which would be introduced at the Auto Expo and launched later during the year, would be more of a volume cruncher for the company, he added.

The company currently has presence in 165 locations across the country with 200 dealerships.

He added that the company is at present trying to reach in the regions where it lags in terms of presence.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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