RESEARCH METHODOLOGY

KIA MOTORS

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APARNA SINGH
19021141023
INTRODUCTION
Kia Motors Corporation (KMC), founded in 1944, is South Korea's oldest manufacturer
of automobiles and is now a subsidiary of the Hyundai-Kia Automotive Group with sales of
over 3.3 million vehicles in 2015. Over 1.5 million vehicles a year are produced in 13
manufacturing and assembly operations in eight countries.

Hyundai Motor Company

As of New Year's Eve, 2015, the Hyundai Motor Company owns a 33.88% stake in Kia
Motors.[31] Likewise, as of New Year's Eve, 2015, Kia Motors is owner in 22 different
Hyundai companies. Its ownership percentages range from 4.9% up to 45.37%.
Kia Motors Corporation
Kia Motors Corporation (KMC), founded in 1944, is South Korea's oldest manufacturer
of automobiles and is now a subsidiary of the Hyundai-Kia Automotive Group. Over 1.5
million vehicles a year are produced in 13 manufacturing and assembly operations in eight
countries. These are then sold and serviced through a network of distributors and dealers
covering 172 countries. Kia today has 40,000 full-time employees worldwide and annual
revenues of over US$14.6 billion. Kia Motors Corporation's brand slogan is "The Power to
Surprise". From August 2009 until December 2012, the corporate was led by Hyoung-Keun
(Hank) Lee.[33] Kia Motors America (KMA) is the American sales, marketing, and
distribution arm of Kia Motors Corporation based in Seoul, South Korea. KMA is based in
Irvine, California. KMA offers an entire line of vehicles through quite 755 dealers
throughout the us. For 2008, KMA recorded its 14th consecutive year of increased U.S.
market share. In November 2009, Kia started production at the primary U.S. Kia Motors
plant, Kia Motors Manufacturing Georgia, in West Point. As of December 2011, the
power was building the 2012 Kia Sorento crossover vehicle and therefore the 2012 Kia
Optima sedan. Currently, the facilty builds the 2016 & newer Kia Sorento & Optima and
therefore the 2020 Kia Telluride.

Kia Motors Corporation, also known as Kia Motors, is a South Korea based automobile
manufacturer. The company has its global headquarters located in Seoul. A minority stake of
the brand is owned by Hyundai Motor Corporation. Kia Motors has made its debut in the
Indian market with the launch of the Seltos. Kia Motors is set to make its debut in the Indian
market with the launch of its first product, the Seltos, on 22 August 2019. The Seltos is a
mid-size SUV that is produced at the company’s manufacturing facility located in Anantapur,
Andhra Pradesh. The annual production of this plant stands at 3 lakh units. The Kia Seltos
will be sold via 260 touch-points located across the country. Apart from the Seltos, Kia
Motors has planned a few more product launches across segments. A few of these models are
likely to include the Grand Carnival luxury MPV, a new small SUV, and a new mid -size
MPV.
RESEARCH HYPOTHESIS-

Sales of Kia motors in india is affected by quality of the

components used onboard.

 The list of problems faced by Kia Seltos owners includes late delivery, poor servicing
and poor quality of the components used onboard.
 Overheating of Transmission. ...
 Delivery of a defective car. ...
 No response for an accident-affected car. ...
 Wrong Delivery Time Period. ...
 Low Mileage

Variables-
Dependent variable- sales/revenue
Independent variable- Profit

REVENUE
In the very first month of commencement of sales, South Korean carmaker Kia Motors India
has outsold (wholesales) half a dozen foreign carmakers car brands like Ford, Renault,
Nissan, Skoda etc. With the launch of first product -Seltos, Kia has marked itself as the 7th
largest carmaker in the country, while other new entrant MG Motors crawled to 11th position
among the total 14 mass brands. Kia sold over 6200 units Seltos in August 2019 while Ford
and Renault which have multiple products in their kitty could only sell 5517 and 5700 units
of vehicles respectively. However, industry experts believe that current market dynamics is
the result of the ongoing slowdown and excitement around new launches. Even though MG
Motors did not have that high octane run but still it outsold companies like Nissan and
Skoda. MG Motor sold 2018 units (retail sales) compared to 1413 units of Nissan and 1164
units of Skoda in August.
However, it's to notice that MG Motors is sharing only the retail numbers. Both Kia and MG
Motor have recorded huge bookings of Seltos and Hector. Kia Motors recorded bookings of
over 32,000 units of Seltos, while, MG Motor received 28,000 orders for Hector. MG Motor
plans to increase the production of the Hector SUV to 3,000 units this month at its Halol
facility. The operating profit in the third quarter totalled KRW 291.5 billion (Rs 1,764 crore),
a jump of 148.5 percent from a year earlier, while the company posted a net profit including
minority interest of KRW 325.8 billion (Rs 1,973 crore), 2.2 percent YoY. The company's
global sales in the third quarter of 2019 came at 691,151 units, a slight increase from the
same period last year, despite sluggish demand in key markets and ongoing trade disputes
between major economies.

PROFITS
Kia Motors said while the global economy is likely to remain slow for the remainder of the
year due to global trade tensions, weak investor sentiments and the slump in local economies
in emerging markets, the company plans to boost sales of new SUV and higher-volume
models while establishing stronger presence in emerging markets including India. In India,
Kia plans to gain a deeper foothold, by building on its successful foray into market. The
company sold more than 50,000 vehicle units in India with a single model, Seltos, despite
weakening market demand. Kia had first revealed the Seltos in a global debut on June 6,
following it up with the official launch on August 22. The Seltos is manufactured at a state-
of-the-art plant in Anantapur, which is spread across 536 acres, has an annual capacity of
300,000 vehicles and is also capable of producing hybrid and electric vehicles. The company
has invested US$ 1.1 billion (Rs 7,755 crore) into this greenfield facility, and has plans to
further increase total investment to US$ 2 billion (Rs 14,100 crore) into operations, products,
R&D and market expansion by 2021. In the first six months of FY2020, Kia has
manufactured a total of 18,350 units, with 9,801 units coming up in in September 2019. In the
domestic market, the carmaker has sold a total of 13,790 units comprising 6,236 units in
August and 7,554 units in September. What's more, the Seltos entered the best-selling UVs chart
in its very first month of sale.

Apart from emphasizing on the uniqueness of their products, both carmakers—just like
traditional ones—are trying to win over customers on the reliability quotient. While MG has
launched schemes offering guaranteed buyback with return of 60% of the value of its product
after three years, Kia is trying to assure customers of service with its network of 265 touch points
in 160 cities.Beyond the flashy brand campaigns, both companies have been as traditional as
possible when it comes to selling their respective products, said Avik Chattopadhayay, founder,
Expereal.
“There will always be ‘early adopters’ for any new brand and these are the customers who give
the initial push since they have the wherewithal. I think the key will be MG’s buyback plan and
Kia’s aggressive positioning while rolling out so many touch points," he said.

Statistics-
Kia's revenue from FY 2009 to FY 2018

CONCLUSION
Kia motors currently produce about three million units. With fresh capacity coming up in China
and India, the total capacity will move up to four million. India is one of the biggest markets to
contribute to our future growth. Sure, India can be in top three, top five markets as well. If they
sell three lakhs, India will break into top five markets for in three years. In the US, China,
Europe and South Korea, they sell about six lakhs; India will be the fifth largest market by 2022.