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AUTO

Quick off the block: Kia wants to

take the pole position in
compact-SUVs with Sonet

00:00 00:51

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Kia Sonet GT line; image credit: Kia

Synopsis

Seven years since Ford EcoSport’s debut, the recipe for success in India’s compact-SUV market has largely
remained unchanged. The right blend of stance, looks, and features is what makes winners in this
segment. And Kia’s latest model, Sonet, is no different. Loaded with features and a diesel automatic in its
line-up, Sonet is a strong contender in the compact-SUV segment.

There was no pandemic then. Yet, it was one of

the worst years for India’s automobile
industry, especially carmakers. From a general
economic slowdown to weak domestic
currency to high crude oil prices and inputs
costs, the industry had everything going

against it. The final blow came in the form of a

hike in excise duty by the government on
sports-utility vehicles (SUVs).

The year was 2013.

Then, Ford packed a punch by rolling out a

powerful yet pocket-friendly model — the
EcoSport. Besides being a head-turner, the car
was fully loaded with features and went onto
become a runaway hit. But more importantly,
it carved out a new segment for Indian
carmakers for years to come — compact SUVs.

Seven years since the debut of Ford EcoSport,

the recipe for success in the compact SUV
market has largely remained unchanged. A tall
stance, sharp looks, and a rich features list —
that’s what makes winners in this segment.
Meanwhile, South Korean carmakers have
mastered the art of launching aggressive
models with attractive features, thereby
establishing a firm grip on the country’s
tightly contested compact-SUV segment.

Kia’s latest model Sonet, the third product in BACK TO TOP

its India portfolio, is a fine example. Thanks to

a strong pre-launch advertising campaign, Kia
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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times
a st o g p e au c adve t s g ca pa g , a
Home
Sonet had started creating waves much before
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it arrived in the market. While Honda was

forced to slash the price of its new model
Honda WRV by INR20,000, bookings for
Maruti Brezza and Hyundai Venue dropped
ahead of Sonet’s launch.

A promising mix

Thanks to the intense competition in the

segment, Indian compact-SUV customers have
been a pampered lot. Every launch is eagerly
awaited, especially for the new list of features.
And the latest entrant hasn’t, disappointed car
lovers.

From automatic transmission to a big 10.25-

inch screen to ventilated front seats and
Bose speakers, the Sonet has a lot going in its
favour. However, its mid- and top-end
variants are priced higher than Hyundai’s
Venue. Industry watchers wonder if this
could result in cancellations of pre-launch
bookings. The answer is — it won’t, at least
for the time being.

Kia Sonet received 6,500 bookings the day

bookings opened and the aggregate figure as
on September 29, stood at 31,000, according to
Manohar Bhat, head of marketing and sales,
Kia Motors India.

Out of the initial bookings, 40% were for

Sonet’s top variants in the INR12 lakh -
INR12.9 lakh range (ex-showroom), followed by
mid-variant (HTK+) which is priced between
INR9.5 lakh and INR10.5 lakh. The base
variant, priced at INR6.71 lakh, has seen less
demand. In terms of choice of engines, 40% of
customers preferred the 1.5-litre diesel mill

while another 40% went for the 1.0-litre turbo

petrol version and 20% picked the 1.2-litre
petrol engine.

While this initial demand mix is superior and BACK TO TOP

looks promising, the presence of 17-odd

variants in the line-up is likely to make
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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times
p y
Home decision-making difficult for customers. After
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studying demand, a few of the trims may be

pruned out later, Bhat says.

Kia Seltos had started off with more variants

than the Hyundai Creta, but models such as
the GTK and the GTX+ MT were dropped later.
While the rich product mix is likely to fade
after the first couple of months as more value
buyers come in, Kia expects the rub-off effect
on the brand to stay, and therefore the average
price of its models will be higher than the
segment average.

Meanwhile, the company has been ramping up

its production to tap the initial spurt in
demand for a new product, and to take a bigger
bite of the upcoming festive demand. Bhat
says Kia is eyeing the top position in the
segment.

Well, that certainly is no good news for

competition, more so in a subdued market
where sales are below the pre-pandemic levels.

It’s all about comfort

Coming to the details of variants, the turbo-

petrol version of Sonet, which packs more
power than its 1.2-litre naturally aspirated
petrol engine, is available only in intelligent BACK TO TOP
manual transmission (or iMT, widely known as
clutchless transmission) and dual-clutch
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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times

Home transmission (DCT) options. Unlike Hyundai

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Venue, the Sonet doesn’t have a manual
transmission (MT) option with the turbo-
petrol mill.

Of late, iMT has been marketed as the ‘next big

thing’ in transmission since the two-pedal
footwell makes driving much easier. But it
should ideally come as a choice like in the case
of Hyundai Venue — at least for customers
opting for mid-level trims — rather than as a
standard option.

Interestingly, the 1.0-litre turbo petrol variant

of Kia Sonet starts at INR1 lakh above Hyundai
Venue. Kia has introduced an automatic diesel
(a segment-first), which delivers more power
and torque than the manual version, making it
a strong contender. Diesel compact SUVs in
India such as Ford EcoSport have onlymanual
transmissions, while Tata Nexon and
Mahindra & Mahindra XUV300 offer both
manual and automated manual transmissions
(AMT).

For Kia, a late entrant into the country with a

presence in 160 cities, iMT may be a great way
to lure customers, as driving manual
transmission cars in congested city traffic has
become an increasingly painful affair over the
years.

By eliminating the clutch pedal from the BACK TO TOP

footwell in its turbo-petrol models and

introducing automatic transmission in its
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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times
introducing automatic transmission in its
Home
diesel versions, Kia is betting big on urban
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demand.

For perspective, more than 81% of cars sold in

the compact-SUV segment in FY20 had a
manual transmission. Hence Kia’s thrust on
iMT, AT, and DCT boxes could be a calculated
risk, but it can nevertheless pay off in the long
run.

Meanwhile, the presence of safety features

such as six airbags, ESP (electronic stability
control), VSM (vehicle stability management),
and brake assist only in the top variant shows
that the average Indian customer continues to
prefer creature comforts over safety even today.
For those on a budget, Sonet’s mid-variants
(HTK+ and HTX) offer features such as an
eight-inch touchscreen, android auto, and
many more for under INR10.5 lakh (ex-
showroom).

In contrast, Hyundai Venue has a smaller

screen and fewer connected-car features, but
safety features have been included in lower
variants with DCT as well. Maruti Brezza
doesn’t have connected-car features, and
comes with a smaller seven-inch touchscreen
and limited safety features. While customers
love its bigger 1.5-litre petrol engine, Brezza is
an old model, has fewer features, and loses out
on the value-for-money tag since it is taxed at
a higher rate now.

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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times

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The on-road price gap between Kia Sonet and

its bigger cousin Seltos is INR5 lakh (top-end
versions), with taxes making for two-third of
the difference. Since the feature list is very
similar in both Sonet and Seltos, smaller
families are likely to find a better value
proposition in Sonet.

A shift in buyer behaviour

According to Kia’s Bhat, irrespective of its

higher price tag, Sonet is targeted at urban

youth in their late 20s, a much younger target
group when compared with an average age of
Indian car buyers, which stands at 34.
BY

Rajiv Ghosh

Over the years, the importance of secondand 8 MINS READ

Oct 1, 2020, 12:18 AM IST
third rowseats has diminished in SUVs as the
demand for vehicles is mostly from nuclear Share This Article
families in cities. Customer preference has
clearly shifted from size to comfort and
functionality, prodded heavily by lower tax
burden on sub-four metre cars. Kia knows this, GIFT ARTICLE FONT SIZE SAVE PRINT

and is focusing on giving customers the best

1

possible experience with features such as COMMENT

clutchless shifting and ventilated front seats.

Rate This Story

Moreover, the customer mentality, too, has

evolved. Earlier, most first-time buyers used to
prefer entry-level cars, but for today’s urban
youth a car is more of a lifestyle statement. Of
course, the pandemic has slammed the brakes
on spending and several buyers are now going
for entry-level models, but demand is expected
to bounce back in due course of time.

According to industry experts, a bigger boot BACK TO TOP

space will be a selling point for Sonet, thanks

to its segment leading boot space as its
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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times
to its segment-leading boot space, as its
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potential customers belong to a lower age
group and travel a lot.

Though Hyundai and Kia share the same

platform and technology, customer perception
is quite different for both the brands. The

customer profile of Kia Seltos is much younger

and more willing to spend, and this gives the
company an edge in terms of higher average
prices for its trims as compared to Hyundai
Creta.

The bottom line

Kia is present in 265 touchpoints across 160

cities and plans to increase it to 300 by the
end of 2020. Mobile-service vans, digital
platforms, and sales agents will help the
company expand its reach.

Gaurav Chopra, partner at automotive retail-

advisory firm Ambit Collective, says, he is not
worried about the company’s limited reach. He
says direct-selling agents are the way to go
when dealerships are away from customers.
Out of the total new cars sales in Delhi and
Mumbai, 22% and 17.5%, respectively, are
through direct-selling agents. Kia is planning
to expand its reach gradually as it doesn’t want
to grow geographically until it achieves a
certain threshold in sales.

According to a Maruti Nexa official, the reach

will not be a big hurdle for Kia in the premium
segment. He says Maruti Baleno was clocking
15,000 units in volumes per month even with
the limited reach of Nexa showrooms (200
cities) as opposed to Arena’s 1,900 cities.
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(Graphics by Abdul Shafiq)

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9/21/21, 4:13 PM kia sonet: Quick off the block: Kia wants to take the pole position in compact-SUVs with Sonet - The Economic Times
(Graphics by Abdul Shafiq)

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1 COMMENTS ON THIS STORY

Mayank Jain 355 days ago

Coming from the Family of "Kia" and entering the Compact-SUV segment, KIA is off to
the flying start. The trust which Hyundai has developed over the superior customer
service is yet to be seen though. If their service is upto the mark in the initial years then
there is no stopping for them.

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