Kia Motors to invest $2 billion in India by 2020, expect 10% sales from India: Kookhyun Shim

South Korean automaker Kia Motors has announced its entry in India, showcasing about 16 global vehicles and a Made in India SP concept sport utility vehicle (SUV), inspired by Indian heritage and driven by advanced technology. The company plans to introduce more products and has a diverse portfolio in India ranging from hatchbacks to SUVs starting 2019. Kia will also introduce an India-exclusive electric vehicle, but no details were revealed.

In an interview, Kia Motors India CEO and managing director Kookhyun Shim tells Mansi Taneja about a planned investment of $2 billion by 2020 in India and the launch of the SP concept SUV by mid-2019.

What's your strategy for the Indian market. Aren't you late in entering the auto market?

We were researching and preparing for last two years. We are not late in entering the Indian market. We have succeeded in many countries globally and have sold 2.8 million vehicles. We have 14 manufacturing assembly plants in five countries globally. We have unveiled our SP concept SUV designed and developed for the Indian market. It will be the first product for the Indian market and will hit the roads in the second half of 2019. This will be rolled out from our plant in Andhra Pradesh, where we are in the process of investing about $1.1 billion. It will have a capacity of 3 lakh units annually.

The total investment for the Indian market will be around $2 billion by 2020.

Why did you zero-in on launching an SUV car for India?

We are thrilled to enter India. India will be amongst the world's largest car markets in a few years.

We are here to be a part of the success story, which has been put into motion by progressive government policies and decision making. SUV has become a trend now. SUVs have become the vehicle of choice among Indian buyers as it combines comfort and space of a sedan along with features and looks of an SUV.

Earlier, we were considering launching a small car but after the research, we decided to go for this SUV.

What are your views on Indian EV market. Do you plan to launch an EV only for the Indian market?

In line with Indian government's mission of full electric mobility by 2030, our company is well prepared. But, we have to meet customers' demand and technology needs of the Indian market. We are confident with our research and consulting that we can succeed in the Indian market.

Currently, which is your biggest market and where do you see Indian market going forward once you hit the road?

We expect Indian market to contribute 10% of our total sales. America is 5,60,000 units and Europe is 5,00,000 units currently. Total we have sold 2.8 million units till now.