11

August

Kia’s and MG’s journey as an automotive OEM in Indian Automotive Scenario

How Indian Shores have been for the Automobile Industry

Indian shores had been and continues to remain complicated for the automotive OEMs around the globe. Only some brands have made their way through while some struggle to do business without losses. The utter dominance of Maruti Suzuki has complicated the market and sentiments of Indian car buyers. In case of Kia Motors and MG, saying that their paths or their journey to make it in India was tough would be an understatement. A lot of preparations, planning and the right time made things go in favor of Kia and MG. However, Kia soared much higher than MG if we look at the numbers and a lot of factors are responsible for that.

Kia & MG’s entry announcements – Opinions, expectations and conceptions

Kia and MG both announced their entry at almost the same time. However the news caught the buzz  in 2019 when both Kia and MG geared up production of vehicles in India. Both were fairly underestimated by the market until they announced their introductory models which later became face of the OEMs. For enthusiasts and car aficionados, it was very much expected that Hyundai, who has been in the Top 5 automobile OEMs in India, would have its contributions in the DNA of Kia cars, which later turned out to be true as well. So, Kia was very much understood by the people till they launched the Seltos.

MG, on the other hand, was not getting as much hype as Kia  because of the obvious reason that it has its origins with SAIC, a Chinese car manufacturer. But MG knew its plans. MG knew what public wanted and was already aware of Indian buyers’ mindset. So, MG planned its most appropriate product for the Indian market, the Hector. Hector was the perfectly sized vehicle which appealed to the buyers. With almost no other car with this much space and features in the market, MG got a good start and welcome from the market.

How Kia got ahead in the race?

Kia, with the Seltos, caught the eyes of Public with its unique looks which even defeated the Germans in my opinion. Kia knew the mindset and hence emphasized on multiple powertrains. Kia got Hyundai’s 3 powertrains which were tried and tested for the extreme conditions of India. The main powertrain being the BS6 ready 1.5L 4Cylinder VGT 16V CRDi diesel engine, which caught the eyes with its perfect mix of performance, efficiency and reliability. The inclusion of an Automatic variant in the lineup also turned up to be successful whereas MG was still struggling with reliability and efficiency of the turbo petrol engine. The absence of option of an AT with diesel engine wasn’t appreciated at all as well.

Kia’s early lead, combined with a strong product offering that resonated with Indian car buyers, propelled them ahead of MG. MG faces an uphill battle to close the gap, but their focus on understanding customer needs and adapting their product strategy holds promise for the future. The Indian car market is a dynamic landscape, and both Kia and MG have the potential to be major players for years to come.

Conclusion
Kia’s early advantage, coupled with a car that appealed to Indian buyers’ preferences (stylish design, multiple powertrains including a proven diesel option, and an automatic transmission), helped them establish a strong foothold in the Indian market. MG, on the other hand, entered the market with a focus on space and features, but their initial offerings struggled with reliability and efficiency, especially when compared to Kia’s tried-and-tested powertrains.
MG has the potential to close the gap in the future, but they will need to focus on understanding the needs of Indian car buyers and adapting their product strategy accordingly. The Indian car market is constantly evolving, and both Kia and MG have the potential to be major players during the years to come.

By,
Ishraj Singh

(A young community member and YouTube subscriber)

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