Kia India aims for 20% sales growth in 2025 driven by new launches

In 2024, the company expects its sales to remain at similar levels to those recorded in 2023

Kia India is aiming to grow its domestic volume sales by around 20 per cent year-on-year (Y-o-Y) in 2025 to reach approximately 300,000 units, driven by new model launches, increased government spending, a rise in job opportunities, and a normal monsoon, a senior company executive said on Thursday.

 

In 2024, the company is expecting its volume sales to be similar to the level recorded in 2023.

 

“Overall, we would close at about 250,000 units in 2024. Next year, we are trying to cross 300,000 units,” said Hardeep Singh Brar, Senior Vice President and head of sales and marketing.

 

Brar unveiled Kia’s compact sport utility vehicle (SUV) Syros in Delhi on Thursday. The company will start taking bookings for the new car in January and the deliveries will begin a month later.

 

He said that while the auto industry’s overall passenger vehicle (PV) sales growth this year is expected to be a maximum 3-4 per cent in 2024, it could be between 5-10 per cent in 2025. A total of 4.1 million PVs were sold in India in 2023.

 

Since Kia India only sells SUVs and multi-purpose vehicles (MPVs) in India, its overall growth is linked more to the growth of this combined (SUV plus MPV) segment.

 

“This year, the volume sales growth of the combined (SUV plus MPV) segment is about 15 per cent even when the overall market’s growth has remained flat. So, if it continues to grow at even 15 per cent in 2025, achieving the growth target at about 20 per cent -- especially with a new car -- would not be a challenge,” he stated.

 

Brar also explained the reasons behind the tepid growth in 2024.

 

“Because of the general elections, the government investments dried up. I think the consumer sentiments were great but the government investments play a very important role in the Indian economy,” he noted.

 

After general elections, there were state elections in major states such as Haryana, Jharkhand and Maharashtra. “So, the government investments have started coming in this quarter and their effect would be felt with a delay… Next year, the volume sales growth will be very good,” Brar said.

 

He said that the growth in 2024 is going to be about 3-4 per cent because the volume sales growth for the industry in the May-December period was just one per cent while it was about seven per cent in the January-April period.

 

The volume sales growth has been “almost flat” for the last eight months, including December, he said.

 

“Once the effect of government investments is felt, the market growth would be between 5-10 per cent (in 2025),” he noted.

 

Another factor that has played a part in tepid growth this year was layoffs in the IT sector. “The sales growth in southern India has been the lowest across India. With layoffs in the IT sector behind us, and fresh recruitment starting, I think this factor will not play a part in 2025,” he noted.

  Brar said that the only factor the industry is not aware of is how the monsoon will behave next year. “If the monsoons are normal, the industry’s sales growth could be in the high single digit in 2025,” he noted.