Kia Bets on New-Gen Seltos to Drive Bigger Share of India Sales

With the launch of the new generation Seltos, South Korean carmaker Kia is expecting the model’s share in its India sales to increase further. Currently, more than a quarter of Kia’s sales come from the Seltos nameplate.

“We have not fixed the numbers, but our internal confidence is that this (new Seltos) will be accepted well by our customers. And obviously, once the vehicle is accepted well, volumes and contribution will go up,” said Atul Sood, senior vice president of sales & marketing, Kia India.

Seltos was Kia’s debut model in India in 2019. Since then, the company has launched eight other models, including the sub-4 metre SUVs Syros and Sonet, MPVs Carens and Carnival, premium electric crossover SUV EV6, luxury electric SUV EV9, Carens Clavis, and Carens Clavis EV.

Speaking to Outlook Business on the sidelines of the launch event in Hyderabad on Wednesday, Sood said that the company is working on the plan to bring hybrid models to India, addressing the buzz around the Seltos that it may be introduced in a hybrid variant as well. However, for now, the company will offer the new Seltos in petrol and diesel variants.

“From a strong hybrid perspective, we are currently studying how to localize the hybrid components in India so that we can bring the technology at an affordable price. But we will definitely introduce the strong hybrid technology for Seltos in due course of time. Not now, but we will introduce it,” Sood said.

Since its launch in 2019, Kia has so far sold over 5.8 lakh units of Seltos in India and more than 1.8 million around the world. “These numbers tell a story of trust the Seltos earned over the years. The Seltos led the mid-SUV segment revolution in India,” Sood said during the launch event of the new Seltos in Hyderabad on Wednesday.

The model will face competition from the newly launched Tata Sierra, Maruti Victoris and Grand Vitara, and Hyundai Creta, among other mid-SUV models.

The new Seltos will be open for bookings from Thursday and the deliveries will commence from mid-January. The company said it will declare the price of the model on January 2.

According to SIAM data, the company dispatched 8,618 units of Seltos, a 47% rise year on year, in October. Overall, Kia’s India sales rose to 29,556 units in October from 22,753 units during the same period last year.

Kia’s vehicle exports from India during the April–October period this year stood at 16,474 units, which is 9% of its production. The share of exports was over 10% during the corresponding period last year. This is far short of the 23% export share in FY23.