A couple of years ago, Nitin Gadkari, Minister of Road Transport and Highways of India expressed his vision of maximising EVs in India by 2030. The news was rather off for all the petrol and diesel engine lovers out there. But with time, car buyers have shown a positive approach towards EVs and India is gradually shifting towards EVs. However, Tae-Jin Park, MD & CEO, Kia India strongly believes that petrol and diesel vehicles will coexist with EVs for another 10-15 years in India. Also, he hinted towards the brand’s future plans for India.
Kia India CEO’s belief on ICE Vehicles
In an interview with ET Auto, MD & CEO of Kia India, Tae-Jin Park was asked about the brand’s electrification plan for India. Replying to that, Tae-Jin Park said – “We anticipate that the electric vehicle market in India will experience significant growth by 2025. However, we feel internal combustion engine (petrol/diesel engines) vehicles are expected to coexist with EV for another 10-15 years in India. This differs from the European market, where there has been a more abrupt shift from ICE to EVs”. Also, he believes the EV market in India will not completely replace the petrol or diesel powered vehicles. However, he believes the current EV market of India could be a significant opportunity for Kia as well as for other automakers. Tae-Jin Park further added – EV sales in India could account for up to 20% of passenger vehicle sales once the market reaches an annual volume of 5 million units. We are working on building more charging infrastructure first to enable this transition.
Kia’s Future Plan for India
In the same interview, Tae-Jin Park also hinted about Kia’s plan for India. The CEO believes that India is a hot market for SUVs as the share of SUVs in the market has surged from 24% in 2018 to an impressive 43% in 2023. Also, he expects the percentage could soon go up to 50% in the coming years. According to him, the rising SUV market share could be a huge opportunity for the brand and they have planned to introduce 3 products next year. One of these 3 products could be the flagship SUV EV9 while other will be a RV. The RV will be manufactured locally in India and it will be launched in both EV and ICE avatars. The EV version is expected to launch next year while the regular version could be launched in 2025. The third product however remains a suspense.
Overall, Kia seems clear with their plans for India. Their belief in the longer life of ICE vehicles could bring more petrol and diesel powered vehicles. Also, the biggest takeaway happens to be the brand’s plan for India. Kia is planning to launch as much as 3 products next year, including a RV. The RV could open a new segment for India and things may get spiced up.
