The Korean carmaker is eyeing new market opportunities within Central Asia, particularly from Uzbekistan, and aims to cater to the demand from India. Gwanggu Lee, Managing Director and CEO of Kia India, speaks to Autocar Professional.
21 Dec 2024 | 5237 Views | By Mayank Dhingra
Kia India, which is among the leading passenger vehicle manufacturers in the country and unveiled its sixth model – the Syros compact SUV – recently, is looking to accelerate demand both in the domestic market and exports.
One such strategic move is the commencement of CKD (Completely Knocked-Down) exports ...
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Kia India, which is among the leading passenger vehicle manufacturers in the country and unveiled its sixth model – the Syros compact SUV – recently, is looking to accelerate demand both in the domestic market and exports.
One such strategic move is the commencement of CKD (Completely Knocked-Down) exports to Uzbekistan, the newest overseas market opportunity that Kia India plans to tap. The company will ship its current best-selling model – the Kia Sonet compact SUV – which comprised 43% of its domestic sales (73,971 units) in the April-November 2024 period and is also the No. 1 export model (9,237 units).
Speaking to Autocar Professional, on the sidelines of the Kia Syros unveil event in New Delhi on December 19, Gwanggu Lee, Managing Director and CEO of Kia India, said: “Our company has developed this new market opportunity in Central Asia and we are increasing our CKD exports. We are now focusing on CKD exports to Uzbekistan.”
Given the geopolitics, the company will leverage the East Asia route to ship its CKD kits from India to Uzbekistan, but according to Lee, “If the geopolitical constraints are resolved, Central Asia is very accessible from India.”
CKD EXPORTS CROSS 100,000 MILESTONE
The company estimates strong potential for compact SUVs like the Sonet in the Uzbekistan market. While it has already commenced CKD exports to Central Asia, it aims to register significant volumes of CKD units to Uzbekistan this year.
Kia India is one of the key export hubs for Kia Corporation and accounts for 50% of the Korean automaker’s CKD exports worldwide. On November 25, Kia India announced that it had achieved the export milestone of 100,000 units of CKD vehicles since it began overseas shipments in June 2020 from its Anantapur manufacturing facility. The company has targeted exports of over 38,000 CKD units across Uzbekistan, Ecuador and Vietnam in 2024.