He added that the Seltos is part of Kia’s hybrid plans, though he did not confirm whether it would be the company’s first hybrid offering in India.Kia India, which was once among the top five passenger vehicle (PV) manufacturers in the country, is looking to regain its position through the launch of the new-generation Seltos and by entering additional segments aligned with evolving customer demand.
The carmaker slipped out of the top five ranks in April 2025, after Toyota Kirloskar Motor overtook it amid intensifying competition in the high-volume SUV and MPV segments.
Speaking to Moneycontrol, Atul Sood, Senior Vice President and National Head – Sales and Marketing, Kia India, said the company’s focus is on improving volumes through product strength and customer experience, rather than targeting specific competitors.
“Why not? As a manufacturer, the entire objective is to give better service and better products to our customers so that we improve our volumes and work in that direction,” Sood said, when asked about the possibility of Kia returning to the top five.
“We are not targeting any specific manufacturer. Our focus is on working on our strengths and meeting customer expectations,” he added.
Kia recently unveiled the new-generation Seltos, which Sood described as a response to changing customer aspirations in the mid-size SUV segment. “We got tremendous success when we launched it in CY19. Over the years, customer expectations have evolved, and the new Seltos reflects that. It is bolder, bigger and more progressive,” he said. Prices for the updated Seltos will be announced on January 2.
Strategy for competitive segment
Despite the model’s importance, Kia is not setting specific sales targets for it. Sood cited rising competition in the mid-size SUV segment, which includes models such as the Hyundai Creta, Maruti Suzuki Grand Vitara, Toyota Urban Cruiser Hyryder, Honda Elevate, Skoda Kushaq, Volkswagen Taigun and MG Astor.
According to Sood, the mid-size SUV segment has grown by about 12 per cent annually over the past two years and is expected to expand by about 10 per cent annually until CY30.
“Customers are increasingly aspiring to move to vehicles with better technology, and that creates room for growth if products are aligned with those expectations,” he said.
Alongside its internal combustion engine portfolio, Kia is also preparing to introduce hybrid technology in India. Sood confirmed that development work is underway, with a strong focus on localisation to ensure affordability. “Our endeavour is to localise hybrid components at a competitive cost so that customers find it affordable,” he said.
He added that the Seltos is part of Kia’s hybrid plans, though he did not confirm whether it would be the company’s first hybrid offering in India.
Aligned with electrification push
On electrification, Sood said Kia remains aligned with the government’s push towards electric vehicles and regulatory requirements such as Corporate Average Fuel Efficiency (CAFE) norms. The company currently offers the Carens Clavis EV as its mass-market electric model and is working on another affordable EV, which is expected to be positioned in the mass segment.
Kia is also evaluating entry into new vehicle segments based on customer demand, while focusing on retaining customers through upgrade opportunities within the brand. Sood pointed to structural shifts in the PV market: SUVs and MPVs together account for about 65 per cent of current sales, a share expected to rise to around 70 per cent by 2030, mainly driven by SUVs.
On manufacturing capacity, Kia does not see an immediate need for expansion. “Our annual capacity is around 4,25,000 units, and at present, expansion is not required,” Sood said, adding that capacity additions will be reviewed as and when needed.
