Question

Between the products of Unilever and Kia automobiles, why would you determine the demand for these products to be different?

Answer 1

Answer:

I think South Korean carmaker Kia Motors Corp., which has had a dream debut in India with its Seltos sports utility vehicle, is not too sure about bringing electric vehicles in the country. “High cost of electric vehicles, poor charging infrastructure, and range anxiety are a hindrance to the consumers currently,”We wanted consumers to replace the old manual cars with the new electric cars, because we decided that these electric car products should be different than other products.

Manohar Bhat, vice president and head (sales and marketing) at Kia Motors India, told Bloom bergQuint in an interview. “EV is not an attractive proposition for customers today.” Bhat, however, said the company is capable of building electric vehicles for the Indian market at its Anantapur plant in Andhra Pradesh. A plan for electric vehicles will be drawn after seeing consumer demand in the country, he said. The strategy is different from another newcomer MG Motor India Pvt. Ltd. that recently unveiled the MG ZS EV, an electric SUV, as its second product for the Indian market. Kia Motors, which has sold nearly 45,000 units of the Seltos in just four months since launch, has lined up two more vehicles for 2020. The Kia Carnival MPV will be launched in February, and a compact SUV will follow soon after.

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 ..