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Kia Motors India surpassed the sales of 80,000 units of Seltos since its launch. Its only manufacturing unit is located at Anantapur in Andhra Pradesh. This facility has an annual production capacity of 3,00,000 units. With a strong start and upcoming streak of new product launches, Kia is expected to reach full capacity by 2022.
According to a media report, Kia Motors is planning to set up a second manufacturing plant in India. It is exploring its options in different states and Maharashtra looks to be the front runner. With the Covid-19 outbreak badly disrupting the manufacturing and service sector, having plants in different states in India could act as a buffer in these uncertain times. But Kia will have a lot of strategic advantages by setting up its plant in Maharashtra.
Kia currently has two products on sale in India namely the Seltos SUV and the Carnival MPV. It is also planning to introduce the Sonet sub-4m crossover later this year. If launched, then the Sonet will compete against the likes of Maruti Brezza, Hyundai Venue, and so in its category. The mini crossover will have India as its sole manufacturing base and Kia expects the model to have excellent export prospects.
Apart from this, Kia is also planning to launch a compact MPV that is likely to rival the Maruti Ertiga. The MPV is expected to be ready sometime in 2021. Due to the COVID’19 situation, Kia Motors is likely to delay the need for an increase in production capacity.