Why Kia is keen to drive into India

Korean auto major plans to enter the crowded Indian market with its compact sedans and SUVs

Korean auto major Kia, founded in 1944, three years before India became independent, is the latest entrant into the buzzing Indian car market, the fifth largest in the world. The crowded Indian car market has almost two dozen brands, including the luxury ones. This number continues to expand as growth-hungry global players bet big on India, projected to become the world’s third-biggest market with an annual size of five million cars by 2020.

Kia has decided to pump in Rs 7,000 crore to set up a manufacturing unit in Andhra Pradesh with an annual capacity of 300,000 units. Kia is