Enthused by the sustained bookings for Seltos SUVs which have crossed 60,000 units, Kia Motors has started its second shift at Anantapur facility in Andhra Pradesh in India to take the capacity to over 15,000 units a month by adding another 1,000 employees.
With plans to fast-track its sub-4 metre SUV production by several months to April 2020, Kia is trying to understand the readiness for the third shift and even taking up the capacity to 4 lakh units per annum from the current 3 lakh units, if the demand persists.
Kia will be launching the Carnival premium multipurpose vehicle by January 2020, followed by a sub-4 metre SUV by July 2020.
Manohar Bhat, VP and head of sales and marketing at Kia Motors, told ET that the Seltos SUV has achieved more than 60,000 bookings till date and given the overwhelming response, the carmaker has commenced the second shift of operations.
“Ramping up production is a complicated process as it involves various external elements like vendors and reorganizing the domestic and international supply chain, etc. We have increased the pace of deliveries. India has shown tremendous potential and acceptance for us,” said Bhat.
It isn’t just major urban centres, but even tier-I, II and III cities are showing interest in new offerings. While 60% of the total sales come from the top 10 cities, rest of the demand has been generated by tier II towns and cities. With a commitment of over a billion dollars in the plant and the similar amount from the vendors, Kia has committed to launching one new product every six months for the next three years.
Seltos has already broken into the top three mid-size SUVs in the market and with just one model. Kia has grabbed a market share of 3.5% ahead of the likes of Ford, Volkswagen and Skoda which have been in the Indian market for over a decade now.
With the premium MPV Carnival and sub-4 metre SUV lined up for launch within a year, Kia is well on its way to grabbing over 5% of the market. Interestingly, Kia’s has outpaced rivals in a market which is witnessing a record decline in growth rates, hobbled by a slowing economy and other factors that are forcing prospective buyers to defer their purchases.
