SUV or sports utility vehicle has become the multi-bagger for the domestic automobile industry. Of this, the mid-size SUV segment has grown by 24-25% and will only grow double the percentage of the industry in the next quarters of this fiscal, according to Hardeep Singh Brar, NHSM (national head sales and marketing), Kia India.
"Specifically for this year, the mid-size SUV segment is growing comparatively better. The growth is around 25% versus 15% in lower-size SUVs. Mid-size SUV has always been at the centre. Since it’s a ₹10-lakh + category, there is a lot of focus on the segment, and the choice of models is huge here. So, the mid-size SUV segment will grow to double the percentage of the industry this year. The industry is currently growing at 10%, the mid-size SUV segment will grow at 24-25% and this trend will continue," says Brar.
The company is betting heavily on its SUV portfolio to expand its market share to 10% from the existing 7%. Kia India launched its diesel-driven mid-size SUV (sports utility vehicle) 2023 Seltos or Seltos Facelift on Tuesday. Since its launch in 2019, Seltos has become the most-sold model of Kia globally. Kia India has Seltos, Sonet and Carens under its SUV portfolio. While Sonet is Kia’s compact SUV, Carens is a multi-purpose vehicle (MPV).
"We would bring in new products in the next couple of years. Our rationales are that with new launches, our product portfolio and expanding our network, all these are steps towards a 10% market share. We have already announced that we would be launching three new EVs (electric vehicles) by 2025. That’s our focus and the results will automatically come. That’s why we have not set any timeline," says Brar.
As the company aspires to become a market leader in the SUV segment, it has no plans to introduce new sedans in the medium to long term. "Given how we see global trends, we have decided that we are not going to produce Sedan in India. We are trying to introduce higher segments in India, but we are not considering the sedan segment," says Myung-Sik Sohn, Chief Sales & Business Officer, Kia India.
"Sonnet is going to be our entry-level model in India for the medium term. If we have a possibility to increase the production, we will not try to introduce the small (sedan) segment but the bigger segment," adds Sohn.
Meanwhile, Kia India continues to remain committed to its ICE (internal combustion engine) models especially diesel to drive sales. According to Brar, 40% of the company's demands last year were from its diesel models. "If we have to look at last year, 40% of our demands were for diesel models. So, diesel demand continues to remain strong. Because in all the cars above ₹10-lakh, in the SUVs that are above ₹10-lakh, the diesel demand is very strong. So the higher you grow, the diesel demand continues to remain strong. So, despite all the discussions, we don't see any dip in demand for diesel," says Brar, while adding that for long-haul routes customer preference is more towards diesel models.
Brar, however, reiterates the company's commitment to electrification. Kia India launched EV6 last year and has plans to launch three more EV models by 2025. The company also announced an investment of ₹2,000 crore in India under the PLI (production-linked incentive) scheme, with focus on electric vehicles.
Unlike rivals Hyundai and Honda, the company does not have any plans to introduce hybrid cars. "Hybrid cars are coming in when there is no specific strategy for electric cars. We have a very clear electric strategy. Come 2025, we are ready with electric vehicles. So our electric strategy doesn’t have a doubt. For one-and-half years, bringing in hybrid car doesn’t make any sense," says Brar.
