Kia India Eyes 10% Sales Growth This Calendar Year
The situation of semiconductor supplies is much better now as compared to last year, says Kia India.
Automaker Kia India expects its sales to grow by 8–10% this year as compared with 2022 on the back of improved chip supplies and introduction of the updated Seltos in the market, according to a senior company official.
The South Korean carmaker, which sells models like Carens, Sonet and Seltos in the Indian market, sold a total of 3.4 lakh units in the domestic and export markets last year.
"So last year our domestic sales were about 2.54 lakh units, while exports stood at around 80,000 units. So we did about 3.34 lakh units overall. So, this year, we are looking at about 8–10% growth," Kia India National Head (Sales and Marketing) Hardeep S Brar told PTI in an interaction.
He said the company outpaced the overall passenger-industry growth in the first half of the year and expects to do the same in the second half as well.
"For the first six months, industry has grown at 10%. We have grown at 12%. So like every other year, we have outpaced the industry," Brar said.
He expressed hope that the overall industry volumes are expected to stay in the vicinity of 40 lakh units this year.
"The second half is not going to be such a high growth period for the industry," Brar said, adding that the high base of last year is going to be a restricting factor.
Last year, the industry volumes were around 18 lakh units in the first six months, it is around 20 lakh units this year in the January–June period, he noted.
Elaborating further, he stated that in the second half, industry volume stood at about 19.5 lakh units.
"So that means from 19.5 lakh units to 20 lakh units would be a very marginal growth. Similarly, for us also, the base is high but for example, if it is at 12% in the first half, we would still like to grow at 8 to 10% so that we can keep that pace of 4–5% higher than the industry," Brar said.
The automaker is targeting about 10% growth over the last year and new Seltos will surely help the company to get closer to that, he added.
On semiconductor supplies, he noted that the situation is much better now as compared to last year.
"It's not to the same extent it was last year. We have about 5–10% mismatches so to say but largely it is sorted out. So not so much of a problem now," Brar said.
With improved supply, Kia is looking to produce around 3.6–3.7 lakh units this year to cater to both domestic and export demand, he said.
On the company's plans regarding the upcoming festive season, Brar said that besides Seltos introduction, the company is looking to roll out certain new trims of Carens and Sonet.
On exports, he noted that the company is exploring new markets in the Middle East, Southeast Asia and Latin America.
The company currently exports to around 100 countries, with Mexico remaining its number one overseas market in terms of volumes.