Kia Motors, a subsidiary of South Korean auto major Hyundai, is all set to enter the Indian auto market, which is expected to become the third largest car market by 2020. Kia has been contemplating its entry into the Indian automobile market for many years but had delayed its plans due to the slowdown in the Indian market and its own expansion plans in China and other key markets worldwide. Currently, Kia sells cars such as 'Soul' cross-over, 'Sportage' compact SUV and 'Rio' hatchback in Europe, South Korea, the US and China.
The Korean auto-manufacturer has already started studying possible models and suppliers for its Indian entry and it is in the process of identifying land for setting up its factory in India. Even Hyundai India may use Kia’s factory as its own factory in Chennai is expected to reach its peak production capacity soon. In recent times, Hyundai has been cutting down its export consignments in order to meet the demand for its cars in India.
However, Kia Motors will take at least two to three years before it starts selling cars in India. Apart from setting up the factory, the automobile manufacturer will need to put in place a network of suppliers in order to localise its models.