Hyundai to do a 'Datsun' with Kia

Earlier this year, we had reported that Korean automotive manufacturer - Kia Motors, a subsidiary of the Hyundai Motor Group, is planning to enter the Indian market by the end of 2019. However, if recent reports are to be believed, instead of simply bringing-in its global models to India, the automaker plans to develop all-new products that are specifically built for the Indian market. By doing so, Kia is reportedly aiming to compete against the country's largest car maker, Maruti Suzuki, in the small car segment.

Hyundai India has already cleared its intentions to focus on the premium segment with cars like the Creta and the Elite i20. As a result, Kia is expected to fill in the void left in the sub Rs. 4.5 lakh marketplace. The success of cars such as the Renault Kwid, Tata Tiago, and Datsun redi-GO show that there is a demand for 'value for money' products. This is the segment that Kia is planning to target in the Indian car market.

The aforementioned brand placement strategy being adopted by Hyundai and Kia reminds us of something similar that Nissan did with the Datsun brand in India - two different brands catering to two different market segments.

In order to do so, Kia has already set up an R&D centre in Hyderabad. This centre is responsible for studying the Indian automotive market and developing India-specific products.

The Korean automaker is also in talks with various state governments for finalizing the location of its manufacturing plant in India. Andhra Pradesh and Tamil Nadu seem to be the front runners.

Source: Business Standard