The South Korean carmaker expects India to grow at double the pace of global growth by 2030. It has set itself a target of 4.3 million worldwide sales by 2030, which is a growth of over 4.3% in 7 years.
05 Apr 2024 | 7090 Views | By Ketan Thakkar
South Korean car major Kia has set a target of selling 4 lakh units annually in India by 2030 thereby aiming for a 10% compound annual growth rate (CAGR) over the next seven years.
Addressing the Investor Day 2024 in Seoul, Korea on Friday, Ho-Sung Song, the president and ...
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South Korean car major Kia has set a target of selling 4 lakh units annually in India by 2030 thereby aiming for a 10% compound annual growth rate (CAGR) over the next seven years.
Addressing the Investor Day 2024 in Seoul, Korea on Friday, Ho-Sung Song, the president and CEO of Kia said, "We forecast sales of 1.1 million units in North America and 7,52,000 units in Europe where the Kia brand will continue to grow. In India where the market demand is also expected to grow, we will establish a sales system to sell 4 lakh units by showcasing new models that are scheduled to launch in 2025."
Announcing the long-term vision, Song has set a target of selling 4.3 million vehicles worldwide by 2030, with EVs accounting for 1.6 million vehicles.
"The global sales target of 4.3 million units by 2030 marks an increase of 1.1 million units, compared to 2024. Of this, 2.6 million units accounting for 61% will be sold in major markets like North America, Europe, Korea and China, whereas emerging markets will account for sales of 1.7 million units," he told investors.
The growth expected from India is almost double the pace of its average growth of over 4% worldwide, wherein it expects to grow from 3.2 million annual sales in 2023 to 4.3 million by 2030.
The company plans to have a portfolio of 15 electric vehicles by 2027 and India is likely to get at least 4 models – with dedicated EV models for emerging markets.
The EV lineup strategy involves following up on the flagship EV models with the introduction of mass EV models, for enhanced consumer accessibility.
“Our second strategy is the launch of new Mass EV models. Beginning with the launch of the EV3 this year, additional models such as EV2, EV4, and EV5 will be introduced in major markets, a total of 6 mass-market models,” said the CEO adding that “for the emerging markets, “two dedicated models including the Carens EV will be launched to meet diverse demands.”
The company will be adding EV9 later in 2024 to its existing model EV6 before the locally produced compact mass-market SUV EV – codenamed AY – which will hit the roads in 2025, this may be preceded by Carens EV in 2025. Both these models are likely to be available by the festive season of next calendar year. Between both these models - the company is planning to produce about 50,000 to 60,000 EVs in India.
The CEO did not share an India specific EV target but said, “The goal for 2026 is to achieve sales of 587k units of mass EV models, with the aim of accounting for 66% of total EV sales.”