Kia expects 30 per cent increase in car sales in India next year
24. February 2022South Korean carmaker Kia is eyeing increased sales in India. The company expects sales to grow by 30 per cent in 2022 as the chip crisis in the auto market slowly eases. Towards the middle of the year, chips and semiconductors should become more available again and Kia India will be able to utilise the full capacity of its plant in India. To this end, the capacity of the Andhra Pradesh plant will be ramped up from the current 220,000 units (exports included) to 300,000 vehicles. The company is even planning to expand the existing plant to increase capacity by another 100,000 units. Cars and their components must obtain AIS (Automotive Industry Standards) certification in India before they can be used in the Indian market.
According to Kia India manager Tae-Jin Park, last year’s target figures had to be revised downwards due to the chip crisis. Nevertheless, with the situation easing and the launch of the new Kia Carens, a 25 to 30 per cent increase in sales should be possible this year, Park told the Economic Times of India. In the Indian car market, the Kia Carens is positioned between the Maruti Suzuki Ertiga and the market leader in minivans, the Toyota Innova. Insiders expect monthly sales of the Carens to be between 5,000 and 7,000 vehicles. Together with other Kia models, this could reach the targeted figures of 25,000 vehicles sold per month and the three-year target of 300,000 units annually.
Manager Park further said that the current production capacity is indeed 300,000 units but could be expanded to 400,000 units with automated manufacturing steps. Kia India will closely monitor the market and respond accordingly to higher demand, Park added. Moreover, Kia India is planning to launch an EV in the Indian market soon. The strategy for this will be announced in the first few months of 2022, Park said.
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