The odds were stacked against South Korean automaker Kia when it introduced its first SUV, the Kia Seltos, in India in August 2019. The industry as a whole was experiencing the worst sales decline in both two and four wheelers. Additionally, a sizable portion of customers are turned off by India’s predominately small-car industry.
However, it appears that Kia, which established a manufacturing in Andhra Pradesh, packed in what Indians demand – good quality at a reasonable price. Even industry experts were taken aback when, by March 2020, it had overtaken all other SUVs in sales. It soon ran into an issue that many automakers would want to experience: an excessively high demand that was impacting their delivery times and forcing them to transition to two shifts.
“The group has been able to increase its market share in India because to KIA’s successful debut. According to Sumit Bali, president and head of retail lending and payment at Axis Bank, KIA is a superb example of good badge engineering, something other original equipment manufacturers like Renault-Nissan haven’t been able to do. Bali made this statement during an Axis Capital conference.
Its alluring price tag of roughly Rs 9.8 lakhs, Indian preference for small SUVs, cutting-edge technology, and tiger-nose grille design made it impossible to pass up. The fact that the vehicle was already BS6 certified meant that buyers would not have to worry for a very long time about changing requirements. The top engine choices are also available in their lineup.
All of their subsequent launches, including the Kia Sonet and Kia Carnival, mirrored the success “Voice commands, a sun roof, wireless charging, and other innovative amenities are now quite popular in cars of all sizes. Although its market share increased to 5.14 percent in January 2021 despite a declining sales market, the Kia Seltos continues to be the company’s flagship vehicle.
The Hyundai Creta and Maruti Brezza, two of the most popular vehicles in the compact SUV segment, were outsold by the Kia Seltos in several months after its release. But Seltos is a competition for more recent models as well. In 2021 and 2022, there will be a lot of car debuts that will have to dethrone Seltos from its throne.
Seltos is listed as a key competitive model for as many as nine of the new car releases scheduled for the upcoming fiscal year, according to the Eyecatchers study by Axis Capital. Mahindra & Mahindra, whose three launches fit in the category and include a next-generation Mahindra XUV500, may face the most competition from Kia Seltos.
Additionally, Kia will be competing with MG Motors, another recent entry into the Indian market. Two of its three new models, the MG ZS and a six-seater MG Hector, may have to battle not only with Mahindra XUV500 and Hyundai Creta but also with Kia Seltos.
CAPTCHA:
You agree to receive marketing emails from Insider as well as other partner offers by clicking “Sign up,” and you also agree to our Terms of Service and Privacy Policy.
In This Article...
Is Kia Seltos prosperous?
In September 2021, Kia India sold 9,583 Seltos mid-size SUVs. As a result, Seltos is the best-selling SUV in India for the month of September. 7.8 percent of the market is accounted for by Kia, which had YoY increase of 1.4 percent. Additionally, Kia’s line-up includes the popular Carnival MPV and Sonet small SUV. 4,454 units of Sonet and 404 units of Carnival were sold by the company. What then accounts for Kia Seltos’ enormous popularity in the Indian market?
Over the past few years, there has been a noticeable growth in the market for SUVs. Kia made the proper decision by introducing a mid-size SUV as their debut model. Due to the fact that SUVs are currently selling like hotcakes, every manufacturer is now concentrating on them. SUVs give drivers a commanding driving stance and better road presence. They are also useful, have a big boot, and can navigate the Indian roads with ease thanks to their high ground clearance. The Kia Seltos also have these advantages.
Why is Kia profitable?
For Indian clients, Kia India offers some of the most feature-rich and beautifully designed goods. All Kia vehicles, from the entry-level Sonet to the top-of-the-line Carnival, have best-in-class features. Numerous segment-first features are also included in the recently released Carens.
Kia products aren’t necessarily pricey despite having contemporary and feature-rich automobiles. In actuality, Kia India provides Indian customers with the most affordable products. As an illustration, the recently released Kia Carens, a 7-seater MPV with SUV style, is priced at just Rs 8.99 lakh (introductory, ex-showroom). Hyundai Alcazar, a competing vehicle with comparable specifications, costs more than Rs 16 lakh.
Aside from its own products, Kia boasts one of India’s biggest and most advanced dealership networks. Additionally, the business won the FADA’s “Dealer Satisfaction Survey” for the second year in a row in 2020 and 2021. Customers strongly like the computerized, high-quality service and automobile purchasing process.
The fact that Kia goods are among the safest on the market helps to drive Kia automobile sales. When buying cars, many young purchasers consider safety to be crucial. Seltos, Carnival, among other models, were among the eight Kia vehicles honored by the Insurance Institute for Highway Safety (IIHS) on its 2022 TOP SAFETY PICK (TSP) and TOP SAFETY PICK+ (TSP+) honors lists.
The product mix that Kia India had for India was another point that worked in its favor. Beginning with the highly sought-after mid-SUV class, Kia went on to develop the premium MPV segment with the Kia Carnival, which became popular with celebrities. Additionally, Kia focused on the SUV craze in India by releasing a compact SUV and later an MPV with SUV style. Although Kia makes some excellent sedans, the firm claims they want to take advantage of the SUV trend in India.
The reason Kia Selto failed.
According to pictures posted on social media, the SUV was split between the C pillar on the driver’s side and the B pillar on the passenger side. It is not often possible to see devastation of this magnitude.
It would be dangerous for rescue personnel to cut into the floor because the gasoline tank is right underneath the seat and the fuel lines also run below. According to reports, the Kia Seltos was moving quickly at the time of the collision on the two-lane NH-547.
Local police officials reportedly believe the Seltos was being driven very quickly. Additionally, it has been alleged that the driver is the subject of a FIR.
The split in the SUV was caused by a unique confluence of elements. The tremendous kinetic energy generated from the high-speed impact in a small space caused the Kia Seltos’ monocoque construction to entirely break into two pieces. The SUV appears to have been destroyed by a powerful force in the image.
The upgraded electronic stability control in the Kia Seltos’ most recent iteration helps the car maintain stability even during maneuvers at high speeds. The SUV that was involved in the collision is an earlier model of the Anniversary Edition, which is no longer available. It lacked the ESC feature.
According to reports, a motorcycle rider suddenly crossed in front of the SUV as it transitioned from a gravel lane to the main road.
In an effort to save the motorcycle rider, the SUV’s driver swerved and made a U-turn. The SUV then returned to the road and abruptly made a right turn in anticipation of a bridge. However, the maneuvers were unsuccessful, and the Seltos struck the bridge. The impact caused the SUV’s floor and roof torn off, causing the SUV to split in half.
The SUV’s rear seat occupants perished in the collision. Despite suffering severe injuries, those in the first row were able to survive thanks to the airbags and seatbelts.
Prior to this, the Kia Seltos received a 5-star rating in both the ANCAP and Global NCAP crash tests. Six airbags and safety aid systems were included as standard equipment in the ANCAP test vehicle. Dual front airbags, ABS with EBD, and rear parking sensors are all standard on the vehicle built for India. Up to six airbags, blind-spot monitoring, a head-up display, and a 360-degree camera are included in the model.
How come Kia Seltos is the best?
The Kia Seltos lineup is a maze of variations, but if you break it down according to your needs, you’ll get the appropriate model for the right price. If money is not an issue, the 1.4 petrol-auto GTX+ is our choice. The many feel-good features simply enhance the experience because of the amazing combination of performance and convenience. The Seltos diesel is an excellent choice if you think of SUVs as having diesel engines or if you simply drive a lot of miles. Lower versions are reasonably priced for what you get, but if you want more frills and an automobile, be ready to fork over a sizeable sum of money.
All things considered, for typical urban consumers, the Kia Seltos 1.5 petrol with the CVT automatic will make the most sense. The petrol engine and CVT work well together and make daily driving less stressful. There is only one available variation, but it comes with tons of extras and is reasonably priced. The Seltos 1.5 petrol-auto becomes an attractive purchase when you factor in the promise of respectable fuel efficiency (claimed 16.8kpl).
Is Seltos preferable to Creta?
Should you purchase a Kia Seltos or a Hyundai Creta? Compare the two models to determine which one is best for you based on their price, size, space, boot space, service cost, mileage, features, colors, and other specifications. Price ranges for the Hyundai Creta E (Petrol) start at Rs. 10.44 lakh and the Kia Seltos HTE G range from Rs. 10.19 lakh ex-showroom (Petrol). Seltos has a 1497 cc (Petrol top model) engine, whilst Creta has a 1497 cc engine. In terms of mileage, the Creta (Diesel top model) has a mileage of 21.4 km/l, whereas the Seltos has a mileage of 20.8 km/l (Diesel top model).
Is Kia successful in India?
The domestic market experienced its worst performance in a decade in fiscal 2020, the company’s second year of business in India, but it nevertheless manufactured more than 100,000 vehicles and reported Rs 10,838 crore in revenue. One of the quickest to achieve operational profitability in India’s fiercely competitive passenger vehicle market is South Korean automaker Kia Motors.
According to its Ministry of Corporate Affairs filings, Kia reported operational profit, or earnings before interest, tax, depreciation, and amortization, of Rs 308 crore for the year ending March 31, 2020. However, Kia ended the year with a net loss of Rs 326 crore due to interest payments and hefty depreciation costs. If Kia is successful in producing 200,000 vehicles during the current fiscal year 2021, the firm may have a revenue of close to $2.4 billion (Rs 17,000 crore), according to ETIG estimate.
Over 105,000 units were sold during the previous fiscal year, with exports accounting for nearly a fifth of the overall volume. Kia has so far in FY21 taken a 5% market share in a market where global behemoths like General Motors, Ford, and Volkswagen struggled to cross a 2-3% market share even after being present for over a decade. Just behind Mahindra & Mahindra and Tata Motors, she is rapping on the podium.
Kia now holds a 1315% market share in the industry despite having only three utility vehicles in its model lineup. In India, the total sales of Kia and sister business Hyundai Motor in FY20 were 63 percent greater than those of Maruti Suzuki, the market leader. They each held roughly a 2324 percent market share.
Up till FY20, Kia has spent Rs 8,771 crore in its operations in India, of which Rs 2,501 crore came from the prior year. In FY20, it realized an average of Rs 10.2 lakh per vehicle, which was 1.52.1 times more than the next two largest automakers, Hyundai and Suzuki.
Kia’s revenue was almost on par with Tata Motors’ passenger vehicle division. However, the operating profit situation for the two businesses shows a clear divergence. Kia Motors’ Indian subsidiary’s strong volume performance is assisting in the company’s expansion of its global operations.
The largest growth in any market for Kia Motors internationally was seen in the Indian unit’s car dispatches, which increased by 175 percent in the third quarter.
How many Kia Seltos were sold there?
The sales data for the month of March 2022 have been made public by Kia India. This South Korean automaker’s Indian subsidiary sold 22,622 vehicles in March 2022, marking its greatest monthly sales volume ever. In comparison to the same period previous year, Kia India’s sales increased by 18.44% YoY to 19,100 units.
With 8,145 sales, the Kia Seltos continues to be the brand’s best-selling vehicle, and the newly introduced Kia Carens took second place with 7,008 unit deliveries. With 6,871 and 328 units respectively, the Sonet and the Carnival also had strong sales. With a 7% market share in the local PV market in March 2022, Kia India is still among the top 5 best-selling car brands in the nation.
Kia not only achieved its highest-ever monthly sales but also its highest-ever quarterly sales, recording 60,062 domestic dispatches with a quarterly YoY gain of 9.5%. Despite the lack of semiconductors, Kia India sold 1,86,787 units during the fiscal year (FY) 2122. The business reported YoY increase of 20%. Additionally, the Seltos and the Sonet made up 50% and 40%, respectively, of Kia India’s domestic sales in FY22.
Seltos: Is it a failure?
The 2021 Kia Seltos features two engine options, just to give you some background information. A 2.0-liter four-cylinder engine with 146 horsepower and 132 lb-ft of torque serves as the standard model. A 1.6-liter four-cylinder engine with 175 horsepower and 195 lb-ft of torque is an upgrade option. Decide on the second choice, then, without a doubt. A little underpowered is the first.
Also, a recent recall involved the 2.0-liter engine. Consumer Reports claims that the 2.0-liter engine in 147,249 20202021 Kia Soul and Seltos cars was recalled. The engine could be harmed by an uneven heat-treating procedure for the piston oil rings.
The SUVs can consequently encounter an abrupt loss of power and an elevated fire risk. Dealers, however, fixed the problem by checking the engines and installing software that sends alerts when issues are found. Also replaced were certain engines. But did this mean the story was over?