India to be strategically important for Kia's global EV plans

Korean auto giant Kia is soon expected to start manufacturing electric vehicles in India. The carmaker has recently announced the role India will play in its global EV ambitions during Kia's EV Day event last week. Kia currently imports its only electric offering EV6 in India through the completely built unit (CBU) route, which is sold in limited numbers. A dedicated facility for EVs will see the carmaker locally manufacturing electric cars in India which will also is expected to bring the prices down.

The first of its kind Kia EV Day, held on October 12, revealed the Korean carmaker's plans for future electric vehicles. The carmaker showcased two new electric concept vehicles in Kia EV3 and EV4. When launched, these two new electric cars will join Kia's global EV lineup which also includes the likes of Ray, EV6, EV9 and EV5.

Kia has said that it will manufacture strategically designed EVs in India in coming days. According to the Korean auto giant these electric vehicles will be ‘tailored for emerging markets’, hinting Kia to use India as a base to export EVs to other countries as well. Kia currently has its manufacturing facility located in Anantapur, Andhra Pradesh, where it manufactures ICE vehicles like Seltos, Sonet and Carens.

While Kia did not specify any timeline when its EV facility will come up or its location, the carmaker said it plans to implement its strategy by 2025. The carmaker announced, “Efforts are underway to establish a reliable system for EV production and battery supply, with the brand’s goal of expanding its global EV production facilities to a total of eight by 2025."

India could potentially offer the market for affordable EVs to the Korean auto giant. One of Kia's global EV strategy includes how to cut prices of its electric offerings. Ho Sung Song, CEO at Kia, said, “This is very important for us; how we can make the vehicles below around $25,000 in the market. Maybe in the future, we need some different sales strategies."

Also watch: Kia EV6 Track Test Review

Kia currently offers EV6 electric SUV in India at a starting price of ₹61 lakh (ex-showroom). It rivals the likes of Hyundai Ioniq 5, Volvo XC40 Recharge among others in the electric SUV segment. Kia also showcased the EV9 three-row electric SUV during the Auto Expo held earlier this year in Greater Noida. The EV9 is expected to be launched in India later.