KIA Motors

The Evolution of smart cars

 KIA  is a South Korean automaker that will enter the Indian market in 2019.

The company began to manufacture cars in 1986 with a diversification to the US market as well as the Gulf all through the 1990s. In 1998 Hyundai acquired a stake in the company and today the automaker is subsidiary for Hyundai and both companies share platforms as well as engine and powertrain options.

It will begin its operations here with a premium SUV, compact sedan and possibly a compact SUV. The premium SUV was showcased as the SP concept at the 2018 Auto Expo and will be the first car to be put in to production at their facility in Anantapur in Andhra Pradesh.

In addition to the SP and the compact vehicles, we believe that Kia will also bring in cars from its global range across various body styles and sizes.

Why Invest in India?

It is the Sixth largest producer in the world with an average annual production of 24 million vehicles in 2016 and  has the fifth largest passenger vehicle and commercial vehicle market.

And with the presence of four large auto manufacturing hubs across the country: Delhi-Gurgaon-   Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east. India contributes to 7.1 % of India’s Gross Domestic Product (GDP) by volume.

Two-wheeler production has grown from 8.5 million units annually to 15.9 million units in the last seven years.The automotive industry accounts for 45% of the country’s manufacturing gross domestic product (GDP), 7.1 % of the country’s GDP and employs about 19 million people both directly and indirectly.

 FDI in India:

Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a   major source of non-debt financial resource for the economic development of India.  Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc.

For a country where foreign investments are being made, it also means achieving technical know-how and generating employment. The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges, among other

FDI Policy

100% Foreign Direct Investment (FDI) is allowed under the automatic route in the auto sector, subject to all the applicable regulations and laws.


Auto Policy:

Automatic approval for foreign equity investment up to 100% with no minimum investment criteria.

Manufacturing and imports in this sector are exempt from licensing and approvals.

The encouragement of R&D by offering rebates on R&D expenditure.

Automotive Sectors Boosting Make in India:

Not only India has established itself as a prime destination for automotive manufacture, it has fast emerged as an auto export hub both small as well as heavy vehicles.

Major auto behemoths have set up shop in the country, tying Make in India into the global supply chain. ‘Made-in-India,for the world’s examples include: Renault export of its Kwid to Mauritius,  Suzuki’s Baleno to Japan, Honda’s Jazz to South Africa and Volkswagen Vento to Mexico.


5 countries that are making Big in India:

United States       Japan        United Arab Emirates          Germany             Sweden


Facts about India’s competitiveness Globally:

Future readiness      Technological Readiness    Infrastructure Pillar

Higher Education     Top 50


Recent significant FDI announcement

In February 2018, Ikea announced its plans to invest up to Rs 4,000 crore (US$ 612 million) in the state of Maharashtra to set up multi-format stores and experience centres.


  • Suzuki (Japan)
  • Nissan (Japan)
  • Piaggio (Italy)
  • Volkswagen (Germany)
  • Renault (France)
  • Hyundai (South Korea)
  • General Motors (USA)
  • BMW (Germany)
  • Ford (USA)
  • Toyota (Japan)
  • Mercedes (Germany)
  • Daimler (Germany)
  • FIAT (Italy)
  • Honda (Japan)



                                                    Toyota Kirloskar Motor

                                                                                           – a case study

Toyota Kirloskar Motor Pvt Ltd is a subsidiary of Toyota motor corporation of Japan for the manufacture and sales of Toyota cars in India. It is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai and Mahindra

The company Toyota Kirloskar Motor Pvt Ltd (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of “Putting Customer First”

On June 7, 2012, Vice Chairman of the company revealed that the company is planning to enter the healthcare sector and its first hospital would open in Karnataka in May 2013. toyota Kirloskar motor sold a total of 12,734 units in the domestic market in November 2017.