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Kia Anticipates Increased Sales in Electric Vehicles in India

CIO Insider Team | Thursday, 12 January, 2023
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Kia Corp. of South Korea anticipates electric passenger vehicle sales in India to more than fivefold in the next three years as automakers debut various products at the lower end of the market.

According to reports, acceptance of electric vehicles (EVs) in the country has been better-than-expected and the company is doubling its efforts to bring its first electric vehicle to the mainstream market by 2025.

"Till that time, we want to establish our EV business through the EV6 and EV9," says Kia India's managing director, Tae-jin Park.

From Maruti Suzuki to Hyundai Motor India and Toyota Kirloskar Motor, mainstream automakers have scheduled the launch of EVs in the Indian mass market for 2025, when charging infrastructure is projected to be more common in the country.

Last year, between 55,000-60,000 EVs were sold, accounting for slightly more than one percent of total PV sales in the country. Park anticipates that this figure will rise to between 250,000 and 300,000 units by the end of 2025.

Kia has stated that it will continue to focus on utility vehicles rather than tiny cars

Kia India anticipates EVs to account for seven percent of its sales in the medium term. The company has strong hybrid, plug-in hybrid, hydrogen, and flex fuel vehicle technology and can bring it to the Indian market if there is a commercial rationale for the technology.

Park said India is a very important market for Kia's EV business. "EV sales in the Indian market are expected to reach an inflection point in three years, when almost all manufacturers will have offerings in the market," says Park.

"We are (also) on our way to launch (a locally made model) by 2025."

The company said demand for its EV6, launched last year, has been high. Kia had allocation for 100 units of EV6 last year, but had to request the headquarters for more supplies.

"India has an availability of the vehicle globally, headquarters gave us 500 units," according to Park.

Kia India's sales increased by 40 percent last year to 254,566 units. According to the company, India accounts for 10 percent of global revenues and aims to grow by at least 10 percent this year. Kia has stated that it will continue to focus on utility vehicles rather than tiny cars.

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