Kia India aims for 3 lakh unit sales with new SUV Syros but warns rising EV taxes could block electrification efforts.
Such concerns indicate the kind of roadblocks of the country’s electrification journey for the automotive industry, according to Gwanggu Lee, Managing Director and CEO of Kia India. The taxes on fresh new EVs currently stand at 5% Goods and Services Tax (GST) while used EVs are taxed at 12%. Rumors mention that used EVs may hike their tax level to an 18% slab.
Targets Raising Sale
Kia India has set a target for sales next year at 3 lakh units versus a plausible 2.55 lakh limit set this year to touch a 17% increase in sales. The introduction of Syros, too, is expected to augment this figure, immediately inserting an SUV into one of the fastest-growing segments where Kia has already begun to enjoy some success.
High Price Hurdles
According to Lee, a very critical factor preventing people from switching to electric vehicles is the overwhelming cost of electric vehicles. “A huge burden for EVs is still the high price,” he said. “So without any tax incentive from the government, it is very hard.” This statement mirrors the general apprehension of the industry, where many believe that consumer enthusiasm for electric cars would decline without the necessary government intervention in tax incentive forms.
Global Comparatives
He cited India’s campaign alongside a few countries, indicating that with incentives off, the sales of EVs in Canada were cut dramatically. Still, he said, “Consumers in India differ; many premium EV buyers are multi-car owners and can buy high-priced vehicles.” “EV customers in India are extremely different from other countries. They can choose an EV without that kind of incentive if they like.”
Positive Outlook for 2025
In 2025, Kia India plans to launch an annual sale of about 3 lakh units. According to Lee, India is a rapidly growing economy, and it holds much promise as one of Kia’s best global markets. “The growth of the economy at 6% is not bad… This is good… India is still going up,” he added, pointing out that new customers every time fresh households are created through economic growth and are ready to buy cars.
Introducing the Syros
The newly launched Syros SUV is expected to be a major contributor to Kia’s strategy for capturing more market share in the highly competitive world of SUVs. Deliveries for the Syros will commence in February, and it’s expected to woo a wide variety of consumers seeking modern and fuel-efficient vehicles.
Market Share Goals
Kia intends to increase its market share in the compact and mid-SUV segment, in addition to extending its footprint into that of multipurpose vehicles (MPVs) within India. Currently, Kia has around 15% share, which it aims to grow to 20% by 2025. According to Hardeep Singh Brar, Senior Vice President-Sales and Marketing, Kia India, the two segments of compact SUVs and MPVs combined are around 18 lakh units.
Future Hurdles
One of the possible growing pains with Kia India is a whole bunch of things lingering that can disturb the future growth of the company. So, the GST hike on EVs is going to be a further hit for the acceptance of consumers. Further, Lee insisted that the tax incentives would need to be encouraged by the buyers themselves regarding electric vehicles.
Kia India, while pushing ambitious sales numbers with its new SUV Syros, will be, however, subject to external factors like tax policies, which will determine its success in the Indian market. Keeping in mind the above developments, the company would have to pay more attention to the quality and innovative aspect of its product while keeping the finances to survive such shaping winds and develop newer pathways in strengthening itself across the Indian automotive space.
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