[Enobarbus]

Originally Posted by dreadknight5

I am all for trade restrictions, but this cannot be 1 way street right ?

Excuse my ignorance, but I thought all car manufacturers who set up shop in India and use local vendors and local workforce pay the same taxes as the local car manufacturers and that all of them (including the local manufacturers) pay higher taxes only for imported parts.

[dreadknight5]

Originally Posted by Enobarbus

Excuse my ignorance, but I thought all car manufacturers who set up shop in India and use local vendors and local workforce pay the same taxes as the local car manufacturers and that all of them (including the local manufacturers) pay higher taxes only for imported parts.

Yes, this is accurate. Most mid-top end vehicles are not fully localized. I think most get their engines and few other components shipped from outside India. This jacks up the car price.

[pgsagar]

Originally Posted by dreadknight5

I must say i am impressed with KIA. KIA started off in USA as a low end budget car with plenty of faults and defects. 15 years ago in USA, Kia was considered to be a shitty vehicle. People used to make fun of it and it was considered bad to even get a KIA vehicle as a gift.

Now, within a span of 15 years, KIA seems to be among the most reliable cars in USA. Goes to show that where there is a will , there is a way.

Now, i start to ponder on our desi brands like TATA and Mahindra who despite having huge advantage in terms of heavy taxes implemented on CBU and imports , just struggle when it comes to providing premium quality.

We consumers pay lot more for cars in India when compared to USA. For example Honda Accord in USA costs anything between USD 22,000 - 35000.
$22,000 in USA is not even remotely close to what 13L means in India. $22,000 is maybe 4 months of salary for a junior- mid resource. An inferior version of Accord sells from 37L -45L in India.

This is where Tata's ,Mahindra's etc have a big advantage. Yet, model after model, time and time again they seem to release products with plenty of bugs and lower quality parts.

IF huge import duty tax was not on the vehicles from outside India, these 2 would have been washed out by now.

I think we should stop shielding people and let competition decide survival of the fittest. This protectionism doesn't really help. Be it in automotive sector or other sectors

The problem does not seem to be with Tata / Mahondra. It's with our mindset. No matter how much this desi duo improve quality, we Indians continue to be their harshest critic. Going all out to look for a small reason to reject their cars, even if they are priced excellently for what they offer and even if other foreign brands fleece us by raising prices and removing features, we continue to go gaga over their cars. Amercians may have accepted a foreign brand Kia 15 years down the road but we will not accept our desi brands no matter how much they improve. That is the irony here.

[dreadknight5]

Originally Posted by pgsagar

The problem does not seem to be with Tata / Mahondra. It's with our mindset. No matter how much this desi duo improve quality, we Indians continue to be their harshest critic. Going all out to look for a small reason to reject their cars, even if they are priced excellently for what they offer and even if other foreign brands fleece us by raising prices and removing features, we continue to go gaga over their cars. Amercians may have accepted a foreign brand Kia 15 years down the road but we will not accept our desi brands no matter how much they improve. That is the irony here.

Well KIA was really bad 15 years ago. IF you observe JD power ratings , KIA as a brand has come leaps and bounds ahead. I am no fan of Korean/Japanese vehicles, but am forced to acknowledge the progress made by KIA.

My disappointment has been with progress made by Tata , Mahindra etc despite having considerable home ground advantage.

Yes, you are correct. We Indians are very harsh on our own products and services. No Doubt about it . Am I biased in my opinion ? I don't think so. I give credit where it is due.

FYI : both my current vehicles are from Tata and Mahindra Stable

[volkman10]

Kia announces India entry. Will differentiate itself from Hyundai!

Aims to commence sales from end-2019; focus on mainstream as well as premium models.

Kia intends to differentiate itself from Hyundai and develop its own identity in India. "From the beginning, we will be different from Hyundai, be it in product, dealer or in advertising. We will not confuse the customer with the Hyundai brand, or else our sales will be affected

Kia will build a manufacturing facility with an annual capacity of 3,00,000 units in Andhra Pradesh starting later this year. It signed a memorandum of understanding with the state government for the construction of the greenfield plant.

Kia aims to develop a strong dealer network in the country as it looks to set itself apart from other carmakers.

An investment of $1.1 billion (around Rs 7,050 crore) will go into the plant, which is spread over 536 acres. Production will begin in the second half of 2019, and sales by the end of the same year. The Korean carmaker also specified plans to produce an India-focused compact sedan and compact SUV

Link

[Durango Dude]

All said and done, Hyundai has set a formidable precedent for Kia to emulate! For all that Kia can do to differentiate itself: it belongs to the same stable and use almost the same power plants and models. Bring on the Stinger, Kia so that India can taste power at a VFM price tag! You have to perform magic and pull rabbits out of your hat to surpass/pass muster your sister! All the best KIA; India is watching you closely!

[GTO]

Here's the full press release.

Notice the complete absence of Hyundai - The slanted H isn't even mentioned once.

Why? It allows Kia to have an independent image in the eyes of the public. A new brand also means that Kia can increase volumes by introducing more cars in the hatchback segments (where Hyundai already has enough cars) and more dealers (including in the vicinity of Hyundai dealerships). This wouldn't have been possible without a fresh brand.

Kia Motors to build manufacturing plant in India



- India presents an opportunity for further sustained growth in the fifth largest new car market in the world

- Construction of Andhra Pradesh facility to commence in Q4 2017

- Mass production due to begin in 2019, with 300,000-unit annual capacity

- US$1.1 billion investment agreement for establishment of manufacturing plant in India

(SEOUL) April 27, 2017 – Kia Motors has signed a memorandum of understanding (MOU) with the State Government of Andhra Pradesh, India to build a new manufacturing facility in Anantapur District. The MOU was signed today at a ceremony held in the city of Vijayawada, a part of Andhra Pradesh Capital Region, attended by executives from Kia Motors and the Chief Minister of Andhra Pradesh, Nara Chandrababu Naidu.

Construction of the new manufacturing facility, Kia Motors’ first in India and representing approximately a US$1.1 billion investment, will commence in the final quarter of 2017. The manufacturing facility is expected to begin production in the second half of 2019 and produce up to approximately 300,000 units each year.

Kia plans to produce a strategic compact sedan and compact SUV especially for the Indian market at the new plant, which will occupy around 23 million square feet (2.16 km2 / 536 acres) and incorporate facilities for stamping, welding, painting and assembly. The site will also be home to numerous supplier companies’ facilities.

“We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh,” said Han-Woo Park, President of Kia Motors. “It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer.”

Manufacturing in the fastest-growing major new car market

Construction of a new manufacturing facility in India will enable Kia to maintain its position as one of the world’s fastest-growing automobile brands. The new facility in Anantapur will enable the company to start selling its models in India, and benefit from further sustainable sales growth, locally and internationally.

Kia plans to commence local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur. Furthermore, the region’s fast-developing supply chain network and skilled labor force were other key reasons for the new investment by Kia Motors.

India is the fastest growing major new car market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016. Forecasts suggest the country will become the third-largest car market by the end of 2020.

###


About Kia Motors Corporation
Kia Motors Corporation (www.kia.com) – a maker of world-class quality vehicles for the young-at-heart – was founded in 1944 and is Korea's oldest manufacturer of motor vehicles. Over 3 million Kia vehicles a year are produced at 14 manufacturing and assembly operations in five countries which are then sold and serviced through a network of distributors and dealers covering around 180 countries. Kia today has over 51,000 employees worldwide and annual revenues of over US$45 billion. It is the major sponsor of the Australian Open and an official automotive partner of FIFA – the governing body of the FIFA World Cup™. Kia Motors Corporation's brand slogan – "The Power to Surprise" – represents the company's global commitment to surprise the world by providing exciting and inspiring experiences that go beyond expectations.

[dark.knight]

Originally Posted by GTO

Notice the complete absence of Hyundai - The slanted H isn't even mentioned once.

Why? It allows Kia to have an independent image in the eyes of the public. A new brand also means that Kia can increase volumes by introducing more cars in the hatchback segments (where Hyundai already has enough cars) and more dealers (including in the vicinity of Hyundai dealerships). This wouldn't have been possible without a fresh brand.

Its a fantastic marketing strategy that almost every company (except the ones that want to cheesily, directly rely on existing goodwill) implements these days. They know that the internet is a bomb of information, those who are curious about KIA will tap or swype "KIA" onto their information devices and boom - everything about the company including their alliance with Hyundai is visible, this creates a better impact. Some other examples where their connection aren't apparent at all are :

TAG Heuer - Hublot
Voltas - TATA (atleast I learnt it only a decade ago )
VW - Skoda (I learnt only after VW entered and then started kicking Skoda to the kerb)

Coming back to topic KIA is NOT inferior to Hyundai in any way, Americans seem to love KIA more than H and as of now it is well above Hyundai and Toyota in most of the reliability surveys. There is no car as of today for the total family that is compact yet spacious and where one doesn't have to bend to sit inside like the low slung hatchbacks of today - this is where KIA must bring in their Soul, boxy, squarish and yet looks compact and modern, this will be a wild success from the start and then they can come with their platform twins of Hyundai like the KIA Rio (i20), Cee'd (i30), and Kia Sportage (Tucson).

[itwasntme]

My colleague in Singapore who is pretty knowledgeable about the SE Asian car market speaks very very highly about KIA, and says they can really upset the Indian market with their VFM, economical but well-built offerings.

Bring it on, KIA. We need more competition - ultimately we consumers will be the winners.

[Nohonking]

A week back, I was driving on the dilapidated roads in Nepal which is an open market (no local manufacturing, all the cars are landed in and attract a good 220% duty). Among many international models of Toyota, VW, Daihatsu, Mazda, Ford etc.. I noticed Kia Sportage (SUV platform) and Kia Rio (B1 hatch) being very popular among comparatively much thin population of cars there.

That said, may be we can expect to see Kia Sportage and Rio among the models to debut and be manufactured and debut in India to compete with the likes of Ford Ecosport/Renault Duster and Maruti Wagon R/Ritz/Hyundai i10 respectively. Also, expect India to be a major export hub for Kia cars to cater at least to ASEAN nations.



On the other note (going off topic), I was enquiring about the prices of various cars in Nepal. The humble Maruti 800 costs about 12 lac Nepal Rupees, Scorpio (base variant) costs 35 lac Nepal Rupees, XUV costs 60 lac Nepal Rupees and Merc 4matic costs a whooping 2.5 crore Nepal Rupees. Even a Bajaj Pulsar 220cc motorbike costs about 2.5 Lac Nepal Rupees.

That said, the upside is that people respect and value their cars. They get to drive the true international cars (and not the cut down variants as with many in India). I barely could spot any ill-maintained car, no matter how old. Many of the car owners rather drive in the Indian territory for general maintenance due to the costs being lower here. Thanks.

Sharing pictures of Kia Sportage below for pleasure of all:

[jphukan]

When I was in the US in 2015, I drove around a KIA Forte sedan - I think it rivalled our D-segmenters in terms of size and space. It was a very nice experience, had cruise control and all the creature comforts. I dont see that car being talked about much, but could be pitted against Elantra and its ilk.

[volkman10]

Originally Posted by Nohonking

A week back, . I noticed Kia Sportage (SUV platform) and Kia Rio (B1 hatch) being very popular among comparatively much thin population of cars there.---.

Since you mentioned on Kia RIO, the car was recently test driven along with VW Polo and Suzuki Baleno.

They have a lot to do if they have to compete with Maruti Suzuki/ Hyundai.

Third place: Kia Rio

In many respects the Rio is a step backward over its predecessor. To our eyes it doesn’t look as attractive, while the interior is built from materials that wouldn’t look out of place in a budget city car. It’s also expensive. On the plus side, it’s well equipped, spacious and undemanding to drive. But in a class as competitive as this, the new Kia doesn’t do enough to stand out from the crowd.

Link

[Nohonking]

Originally Posted by volkman10

Since you mentioned on Kia RIO, the car was recently test driven along with VW Polo and Suzuki Baleno.

They have a lot to do if they have to compete with Maruti Suzuki/ Hyundai.

Dear volkman10,

To my understanding and observation made of Kia Rio in Nepal, I do not think it deserves to be driven along with B2 hatches like VW Polo and Maruti Suzuki Baleno. This car can compete very well only if positioned in B1 category. IMO, positioning it in B2 segment may be disastrous for Kia. Thanks.

[volkman10]

Originally Posted by Nohonking

I do not think it deserves to be driven along with B2 hatches like VW Polo and Maruti Suzuki Baleno.

Hope you know that Kia Rio in UK is priced higher than even VW's Polo and is competing in the Supermini segment.

[CrAzY dRiVeR]

Originally Posted by Nohonking

Dear volkman10,

To my understanding and observation made of Kia Rio in Nepal, I do not think it deserves to be driven along with B2 hatches like VW Polo and Maruti Suzuki Baleno. This car can compete very well only if positioned in B1 category. IMO, positioning it in B2 segment may be disastrous for Kia. Thanks.

When you say Nepal, I believe you are talking of the previous generation Rio, which is very well a B1 segment hatch.

However, as volkman10 mentioned above, the new generation Rio for Europe is very well a B2 segment hatch and is costlier compared to the Polo and Baleno in Europe.