Kia recorded a revenue of Rs. 10,838 crore in FY2020 and it sold more than one lakh units; it currently holds 5 per cent market share this FY
Kia Motors India has certainly made a strong impact in the domestic market since its debut last year. With its fleet of two SUVs and a premium MPV, the South Korean auto major has been able to garner audience in aplenty and it has quickly turned operational profit in just a year of its presence. In the Financial Year 2020, the brand has recorded a revenue of Rs. 10,838 crore.
This comes at a time when the passenger vehicle market in India saw an underwhelming outing during the same period. According to its fillings with the Ministry of Corporate Affairs, Kia said to have achieved operation profits (earnings before amortization, interest, depreciation and tax) of Rs. 308 crore by the end of last financial year.
On the other hand, depreciation costs and interest payout have led to a loss of Rs. 326 crore last FY. With 2.9 per cent operating profit margin, and Rs. 10.20 lakh average realisation per vehicle (1.5-2.1 times that of Maruti Suzuki and Hyundai), Kia was on a roll as more than one lakh units were sold in FY2020. In the current financial year, Kia is performing even better with an overall market share of around 5 per cent.
In the passenger UV space, it has a market share of 13 to 15 per cent and if the brand reaches its target production of two lakh units, it is predicted to post a turnover of nearly 2.4 billion USD (Rs. 17,000 crore). Kia invested Rs. 8,771 crore until last FY and it had a marker share of 23-24 per cent when combined with its parental brand Hyundai.
Attaining 5 per cent market in a single financial year is a milestone of its own. The volumes are driven primarily by the Seltos and Sonet SUVs. The mid-size SUV topped its segment in its early months and even since the launch of the second-generation Hyundai Creta, it is posting good sales tally. Launched recently, the Sonet rose to the top of the compact SUV sales charts in its very first month.
And it plays a consistent role in increasing the sales numbers for the company with three engine choices and many segment-first features.