Since its launch in August 2019, Kia became the fastest brand to reach the 3 lakh mark of overall sales. Being a newly launched brand, it has garnered a whole other level of achievement. To meet such high demand, Kia is planning to increase its capacity by 40 % by starting its third factory. The South Korean carmaker is planning to dive into a new model including a utility vehicle, maybe a hatchback, all because of a higher share in the market.
The company plans to boost production at its Anantapur factory in Andhra Pradesh from 18,000 every month to nearly 25,000 units. Tae-Jin Park, chief sales & business strategy officer of Kia India said. The company, a group entity of Korean Hyundai has already invested $1.1 billion in India operations, which aggregates $2 billion if the money invested by its component suppliers and other partners is taken into consideration as well.
“India is a strong bet for Kia globally and we will continue to invest for growth in the future, especially n enhancing our manufacturing capabilities. We have plans for kick-starting the third shift at our facility.” Park said. This statement outlines an aggressive expansion strategy.
Asked whether the company will set up a new factory or manufacturing set up as it moves towards initial 3 lakh capacity targets, he said fresh investments will not be a constraint and any further expansion will happen at the existing location. He further added, Currently Kia India is witnessing a competition catch up. Growing competition is a true reflection of a demanding and evolving market that can catalyze a growth trajectory for the entire industry.
As the world is suffering from a shortage of semiconductor chips. It is most likely that this will be a problem in a swift expansion. However, for a higher share in the market, Kia India has to develop its infrastructure. In its stable of cars, Kia has the Seltos, Sonet, and Carnival. Their most selling mid-sized SUV Seltos has completed 2 lakhs sales in total. Seltos has proved itself to be a perfect product to kick-start their journey.