New Delhi: With Car prices Growing between 35-50% in the last 3-4 years, due to safety and emission mandates, the vehicle has become difficult for mass consumers and average sales growth of 3-4% in the coming year. is likely, What is India? MD Guanggu Lee said on Thursday.
To create demand, Lee suggested, the government could consider lowering car taxes from current levels where mid-size cars and larger vehicles are sold. GST rate More than 45%, while small ones (less than 4 meters) are taxed at more than 28%.
As the company prepares to launch affordable EVs as well as other mainstream cars, Lee said the car’s price hikes come at a time when many middle-class consumers’ incomes are falling at a similar pace. It was not growing.
As part of its strategy to drive demand in the volume-equipped entry SUV market, Kia drove in the all-new Syros mini offroader, a sub-4 meter car alongside its Sonet model.
The boxy Cyrus, which will come with a 1-litre petrol engine and a 1.5-litre diesel, will also be offered with an electric version over the next one year, Lee said. The company here has developed the new vehicle keeping in mind the preferences of the customers, something it did during the development of Seltos and Sonet SUVs and Cairns MPV.
But while the company expects to generate healthy volumes from the new model, the price of which will be revealed later, the Cyrus also falls into a crowded segment. Cool models include Maruti Brezza, Tata Punch, Hyundai Venue, and Mahindra 3XO.
“Kia India has always been driven by a challenger spirit… With Syros, we are further expanding our product portfolio, and are confident to compete,” Lee told TOI.
Kia India expects to sell around 2.6 lakh units this year, and Lee said the company is eyeing sales of 3-lakh units next year. Despite the pain of the slowdown, the Kia MD said India is still “one of the most promising markets” for the company globally. “The country is still among the fastest growing economies in the world, which promises a lot for automakers.”
Lee also said the government should not tamper with duty benefits given to electrics, which are currently taxed at 5%. Low duty makes them affordable, otherwise prices can be high. “Without any tax incentives from the government, it would be very difficult.”