Kia and Daihatsu coming to India?

Hyundai is in the thick of things as far as market share is concerned in the Indian sub-continent.

Hyundai is in the thick of things as far as market share is concerned in the Indian sub-continent. However, if reports are to be believed, it has no means of stopping and is already in the process of bringing its small car brand ‘Kia’ into India in the next couple of years. So is the world’s largest seller, Toyota doing with Daihatsu, its recent acquisition.

A Kia Motors spokesperson said the company is “continually evaluating potential locations for overseas manufacturing facilities, including India, to secure additional engines for future growth. However, as of now no concrete plans have been finalised.”

Both these brands are small car specialists and their parent companies will have one goal in common. To take on Maruti Suzuki in the space where it has been the undisputed king for almost three decades now. Kia is scouting locations for its new factory where it intends to invest half a billion dollars with the report suggesting that Tada in Andhra Pradesh would be mostly the manufacturing site because of its close proximity to Hyundai Motor India’s facility at Sriperumbudur in Tamil Nadu which is at a distance of about 95 km. Globally, both these companies have manufacturing units within 100-200 miles (160-320 kms) of each other to help offset the costs of high initial investment as both plants could use a little bit of help from each other

Daihatsu coming to India?

Daihatsu, a fully owned subsidiary of Toyota on the other hand, is conducting a feasibility study with suppliers, trying to understand the cost structure of Indian market. The company wants to be in the volume segment and is currently developing a small car for the Indonesian market which could find its way into India soon. Many manufacturers are suddenly turning their attention to India as the country’s automobile industry is growing at 7-9% which is currently the highest amidst the slowdown in China, Russia and Brazil.