South Korean auto major Kia Corporation on Friday said that while the Indian government’s direction was clear to move to electrification of the vehicles, but as a manufacturer the company has to work on a right balance and therefore, has to bring all other alternatives including CNG, plug-in hybrids and the hybrids. The company on Friday launched its premium seven-seater sports utility vehicle (SUV) Sorento in strong hybrid and diesel engine options, with a starting price of ₹27.99 lakh and going up to ₹40.39 lakh. In an exclusive interview with , Gwanggu Lee, Managing Director and Chief Executive Officer, Kia India shared that the company was also looking for more exports from its facility in India. Edited excerpts: –
The Sorento segment is one of the growing, competitive segments now and ruled by a few brands. What’s your target for such a segment?
I think we have a chance to enter in the underdeveloped market. It’s not only about entering the market, but we develop the market. Therefore, we need more aggressive pricing, as we already have announced for the Sorento. There are opportunities in this segment because a market is already there for this segment, so some customers will have a choice and we’ve covered in the scope of the price.
Apart from CNG or strong hybrid or electrification, are there plans for plug-in hybrids (PHEV) too?
Even in the global markets, PHEV is very niche and each country has its own choice as a mainstream and we have to see in which direction India will move. All these countries have one direction, but India is open to wider scope with multiple powertrains and we have to adapt. For instance, even for CNG we didn’t expect that it would become so huge, in a very short time for some segments. So we are prepared for that now, and similar for hybrids and electric in some segments, as some customers are looking for eco-friendly products. That is why we have products in each segment like the Syros EV.
The government has recently told auto manufacturers to prepare for stricter norms against internal combustion engine (ICE), while preparing ways for EVs. As an OEM, are you happy with sudden policy changes?
There is no doubt and we are also on the way to electrification and to do that government is also supporting like giving tax benefits…I am also 100 per cent on their side. But, the question is how to manage in the interim period and that is why I said there are so many middle paths created in the market like CNG. As a business, we are also handling it with an appropriate manner and that’s why we have CNG, EV, Hybrid…we can prepare everything. In other countries also, the regulations and policies keep on changing and businesses always face these kinds of challenges. Of course, sometimes we are in a struggle, but this is our destiny…and we have to overcome all.
Government has also talked about pushing more products for the world from India. Hyundai (same parent company) is already doing that, so what’s Kia’s expansion plans in exports?
If Hyundai is doing, why not Kia? We are also continuing the exports and now India is playing the role of an export hub. But, one thing is also important is that many countries have their own local policies and impose OEMs for having some local production capacity like completely built units (CBUs). So, it’s not only completely built units (CBUs), but we are exporting CKDs also out of here. We export to around 100 countries, and most of our export volumes are from the Asian countries, West Asia, African countries, and also Central and South America.
Hyundai has some aggressive plans till 2030. What are Kia’s plans and do you see any challenges in the Indian market?
If the market is developed further, we should also consider accordingly. Our current priority is that what happens till 2030, and post that if the market continues to develop. The car market is different, so we have to see it. We thank the government for GST reforms and the momentum that we have right now, but we also have to have a good balance. There are good times and bad times and if something happens, we should be prepared for that because there are so many external factors…even the war in West Asia is not yet over and the logistics costs are a burden on us. Not only Kia, but all other OEMs too.