Kia looking to accelerate sales in India, plans to launch 7-seater KY next year

The vehicle, which is speculated to be called Kia Carens upon launch, will go on sale in the first quarter of 2022. It is likely to be positioned between Maruti Suzuki’s Ertiga and the erstwhile MPV segment leader, the Toyota Innova.

Kia claims the model will be styled as an SUV and will offer the space of an MPV. The vehicle will be high on features for aspiring Indian utility vehicle buyers, it said.

Kia India managing director Tae-Jin Park said the company is looking to kickstart its next phase of growth in the local market with the global premiere of the six/seven-seater Kia KY next month.

There is an increased preference for larger vehicles, especially since the outbreak of the pandemic, with Indians preferring to travel with families and also for weekends trips, the company said.

“With KY, we will be kickstarting our next India growth phase to consolidate our business and operations. Our extensive research tells us that there is a very high demand for practical and aspirational family cars with advanced futuristic technologies,” said Park.

The KY is expected to bring in incremental volumes and additional traction in the brand.

The company had plans of producing more than 250,000 vehicles in India in the ongoing fiscal year through March 2022. But due to the continuing global semiconductor shortage, those volumes may see a little downward reason. Currently, the company is sitting on bookings of 50,000-60,000 units with waiting periods ranging from 3-6 months depending on the model.

According to people in the know, the KY may bring in volumes of 5,000-7,000 units a month and help Kia scale up sales to around 25,000 units per month and help meet its three-year plan of selling 300,000 units per annum.

Park said the company as well as its suppliers have prepared to expand production ahead of the new launch. However, the global shortage of semiconductors is likely to continue to impact the automotive industry for another six months.

Kia India sold 104,714 units in the local market in the first seven months of the ongoing financial year, which is an increase of 54% over 67,988 units sold in the year-earlier period.

“India is a very important market for Kia globally, not only sales volume wise, but it also has the potential to be a production and global research & development hub,” said Park.

According to data shared by automotive consultancy firm JATO Dynamics India, about 25,000-30,000 units of MPVs are currently sold a month in India.

Ravi Bhatia, president at JATO Dynamics India, said seven-seater utility vehicles lend themselves well to the mobility needs for extended families and families with intercity travel.

“The folding third row offers great flexibility for luggage space when required. The fuel efficiency is also a plus. Increasingly we are witnessing improved equipment in interiors for comfort and infotainment,” he said. “The other vertical is in corporate hiring. The segment had witnessed declining sales in 2019-2021 due to the pandemic. The sales are likely to increase as cities and travel open up.”