In a recent interaction with TOI Auto, Hardeep Singh Brar, Vice President and Head of Sales & Marketing at Kia Motors, provided an overview of the Indian automotive landscape. Brar spoke at length about various aspects, ranging from economic challenges impacting the market to the dynamics of the electric vehicle (EV) segment and Kia’s upcoming product lineup.
According to Brar, the automotive industry in India is set to face some headwinds due to various economic factors. He highlighted concerns such as inflation, high-interest rates, and market volatility are affecting consumer sentiment and purchasing behavior. “The interest rates have been at an all-time high, they have not come down. People now are feeling the pinch.”
“Besides that, at the beginning of the past three years there used to be pending bookings, the pent-up demand was there, which is practically negligible for this year except for the new launches which have happened, but otherwise the pending bookings have been quite low at the beginning of this year. So, that is also a factor.”
Kia Sonet, Seltos sales: Eyeing 1 lakh units sold for each model in 2024
Speaking on the sales of the company’s best-selling products, the Sonet and Seltos, he said that the company is aiming at 1 lakh units of both the models in this fiscal year. “ For Sonet, we are now doing close to 10,000 units per month. We are back to where we used to be. So, we are looking at this year if we can cross 1,00,000 units in a year.”
“Even Seltos sales have been phenomenal. So, we are looking at 1 lakh plus for both the cars. Seltos has achieved this feat earlier but for Sonet, this will be the first time.” he noted.
Kia EV9, new Carnival confirmed: Set for debut in latter 2024
At present, the carmaker sells four products in India, namely Sonet, Seltos, Carens, and the flagship EV6. For now, majority of sales are coming from the SUV category but keeping the imminent transition to EVs in India, the company will be bringing in the EV9 to our shores in 2024, Brar confirmed. Besides that, the new Carnival will also follow shortly after. “Both models will be launched in the second half of the ongoing calendar year, stacked closely.”
EVs will continue to grow, things will change for good starting from 2025
He also discussed the performance of the EV industry and why it will continue to grow, more so, from the next year onwards. Brar stated that there are several factors behind the EV sales not picking up aggressively – “75 percent of the brands are not offering EVs, majorly there are two players.” Also, there is still some sort of range anxiety among the buyers due to lack of charging infra. “But with several players coming into the picture, these things will improve and even the newer models will come with 20-25 percent more range”
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“Battery prices lately, because of the commodities, have also started softening. For example, lithium and other material which goes into making a battery is becoming cheaper. The price gap between an EV and an equivalent petrol or diesel engine is between 60-70 percent. With the reduction in battery prices, the price gap, I assume would be about 35-40 percent next year.” Brar noted.
He stated that the target of achieving 30 percent of PV sales to be electric by 2030 seems doubtful “but I think anywhere between 15-20 percent is possible. This means if the industry is 5 million by 2030, 20% of that is almost 1 million electric cars.” As for Kia, the OEM has already announced a grounds-up EV for India (slated for a 2025 launch), which will be manufactured locally. Besides that, the company is currently working on another BEV which is expected to be announced soon.