Kia Motors is expanding its network and targets to reach 300 touchpoints by the end of the year. Further, the company will now focus on expansion in tier-IV and upcountry markets, which will further penetrate the Indian market.
The company is identifying the nerves of Indian customers. It has rightly understood that one of the critical factors in purchasing a car is consumers’ proximity to the brand. Hence, even before the first product (Seltos) launch in the market, it had a wide-spread network in 160 cities with 265 touchpoints.
After having a grand entry in the Indian market, the company strategically makes India an export hub. Its latest vehicle – Sonet is being exported to over 70 countries across the world.
Now, the company is increasing reach by tapping the rural market. It will take care of dealer’s profitability too.
“Along with focusing on reach, we also have to take into account our dealer partner profitability and, hence, both these will be the key elements driving our strategy for the next 2-3 years.” – Tae Jin Park, ED & CSO, Kia Motors India.
The company’s primary focus is to increase the reach and tap the rural market, expanding further in tier-IV and towns. Maruti Suzuki is the leader in the rural segment, and the market has a lot of potential. Post lockdown, the better demand of passenger cars from the area substantiates the market potential. PSR
Aditya Kondejkar is the Research Analyst – South Asia Operations – for Power Systems Research
