In 2019, when Hyundai launched the Venue and MG launched the Hector, each carmakers promoted these as a ‘connected SUV’ and an ‘internet SUV’, respectively. Almost equally ‘connected’ Kia’s Seltos additionally was, nevertheless it was path-breaking in so many areas that merely selling it as a ‘cyberspace SUV’ or an ‘infobahn SUV’ could not have carried out justice to the opposite issues it excelled in. The Seltos, launched in August 2019, set a brand new benchmark for SUVs in India (see ‘Has the Seltos set a new benchmark for SUVs?’ FE, June 22, 2019; https://bit.ly/3eUzxPr), and gross sales numbers show that. On the eighth day of the Seltos being launched, it made Kia Motors India (now known as Kia India) the seventh-largest carmaker within the nation; within the third month, fifth-largest; and within the seventh month, third-largest. By the tip of FY20 (seven months of Seltos), Kia had offered 81,784 items of this SUV, which was 57% of the full midsize SUV gross sales of 143,435 items. The Seltos comprehensively outsold Hyundai’s Creta—the Creta was anyway due for mannequin change, which occurred in 2020—and through some months it even outsold the extra inexpensive Maruti Suzuki Vitara Brezza, India’s largest promoting SUV total on the time. Until now, 266,886 items of the Seltos have been offered, at a mean of 8,600 unit gross sales per thirty days.
Well-planned technique
There are many causes for its success.One, there was an rising demand for SUVs particularly since mid-2010s, and Kia was in a position to mission the Seltos as an aspirational SUV. Two, the design stands out. Even right now, three years later, it is ready to flip heads. Three, Kia supplied a good selection of engines and gearboxes and trim ranges and so forth within the Seltos, virtually retaining your complete Rs 10-20 lakh passenger automobile phase to itself; with the brand new Creta launched in March 2020, Hyundai did the identical.
Brand picture
Good model picture helped, too. Since its participation within the Auto Expo 2018 and 2020, Kia was in a position to create the picture of a premium carmaker, whose merchandise individuals aspire for. “The Seltos has given Kia rock-solid foundation as far as brand image is concerned,” Harish Bijoor, model guru and founding father of Harish Bijoor Consults, informed FE. “Thanks to that, Kia was able to build a whole business with newer brand forays. In a new market, what you offer initially—class, panache, reliability and dignity—works well into the future. Kia has done this well.”
Seltos had it straightforward early on
It could be argued that, a minimum of within the first few months of gross sales, the Seltos didn’t face stiff competitors (the previous Creta was on its manner out, and Nissan Kicks and Renault Captur, different midsize SUVs of the time, did not generate purchaser curiosity).It could be mathematically confirmed by the truth that within the first seven months (until the tip of FY20), the Seltos had 57% share of midsize SUVs. But in FY21 (because it confronted stronger competitors), its market share dropped to 38.3%, and in FY22 additional to 33.3%. Analysts, nonetheless, mentioned that any new nice product may have begin, after which opponents will increase their sport. In the case of the Seltos, Hyundai raised its sport with the brand new Creta, and Skoda and Volkswagen with the Kushaq and the Taigun, respectively.Gaurav Vangaal, affiliate director, Light Vehicle Forecasting, S&P Global Mobility, informed FE that it’s a profitable technique of the Hyundai Group to rebrand the identical mannequin and goal a special buyer set, and thus enhance the gross sales share of the general phase. A few Kia sellers we talked to mentioned that the marginal fall in gross sales of the Seltos additionally occurred as a result of Kia launched new fashions. “There have been many instances of prospective Seltos buyers choosing the top-end variant of the Sonet,” a Delhi vendor mentioned. “Possibly some prospective Seltos buyers shifted to SUVs such as the Kushaq and the Taigun because of the long waiting period of the Seltos (because of chip shortage). ”While automobiles within the close to and distant future, each by Kia and different carmakers, will set newer data and outsell the Seltos, and possibly someday as electrification takes over the automotive business the Seltos will fade away into oblivion, no one can take away one document from this SUV, i.e. on the eighth day of the Seltos being launched, it made Kia the seventh-largest carmaker within the nation; within the third month, fifth-largest; and within the seventh month, third-largest. (While Kia India and Hyundai India are separate entities, globally Hyundai owns part of Kia, and they also share product growth. The Seltos and the Creta share the platform, engines and gearboxes, however the design and every part else is totally different.)
Seltos vis-à-vis midsize SUVs
Sales in items Period Seltos Midsize SUVs % share of Seltos
August 2019-March 2020 81,784 143,435 57% April 2020 to March 2021 89,173 232,998 38.3% April 2021 to March 2022 95,929 288,213 33.3%
Source: www.financialexpress.com”