The Indian automobile industry is moving swiftly towards electric vehicles in tandem with the government's target of achieving 30% electrification in the passenger vehicle segment by 2030. As domestic automakers shift gears from ICE (internal combustion engines) vehicles to electric vehicles, South Korean automaker Kia India is planning to launch two electric vehicles by 2025. Myung-sik Sohn, chief sales and businesses strategy officer, Kia India tells Fortune India in an interaction that electric vehicles could account for around 20% of the total passenger vehicle sales by 2030.
The company launched its flagship EV6 last year at a starting price of ₹60.95 lakh. "Globally, we intend to bring 14 EV products by 2027, many of which are expected to make it to the Indian shores including one ground-up, India-centric EV by 2025. We expect EVs to contribute around 20% of our sales in India by 2030," says Sohn, adding that the company's locally produced recreational vehicle will be launched in 2025 in the EV and ICE variants.
The company has already announced an investment of ₹2,000 crore in the domestic market under the PLI (production-linked incentive) scheme, with a focus on electric vehicles.
In July this year, the South Korean automaker drove in the diesel-driven mid-size SUV Seltos Facelift. Kia currently commands a market share of 7% in the SUV (sports utility vehicle) segment and expects it to increase to 10%. Kia India, which has products such as Seltos, Sonet and Carens under its portfolio, is betting heavily on the SUV segment. The company expects the mid-size SUV segment to grow at a CAGR (compound annual growth rate) of 5%.
"Our outlook for the SUV market in India over the next 3-4 years remains highly positive. The share of SUVs in the passenger vehicles segment has grown from 24% in 2018 to 43% in 2023, and we expect this trend to continue. As a brand focused on SUVs and MPVs, we are poised to play a significant role in shaping this market across various segments. The mid-size SUV segment is expected to grow at a 5% CAGR. We are looking at capitalizing on this opportunity on the back of the new Seltos," says Sohn. Seltos remains the highest-selling model of the South Korean carmaker in India with more than five lakh sales in 46 months.
Sohn had earlier said that as Kia India aspires to become a market leader in the SUV segment, the company has no plans for introducing Sedan models in the medium-to-long term. The company also said earlier that Kia will be steering away from launching hybrids in India. Just like its peers, the company is also aiming to capitalize on the premium segment.
Notably, as the looming semiconductor shortage abates the industry, the company plans to increase its production capacity for the domestic market to meet the demand for certain products like New Seltos, according to Sohn. "We are looking forward to a promising festive season and are geared up to cater to an increased consumer interest on the back of improving customer sentiment," says Sohn.
In FY23, Kia India's sales grew 44% to 2,69,229 units.
