The company would, however, need more time to actually start rolling out vehicles as it would need to establish manufacturing operations.
Kia, a part of the Hyundai group, is scouting for land in various states, including Andhra Pradesh and Telangana.
When contacted, a company spokesperson said: "We at Kia Motors are continually evaluating potential locations for overseas manufacturing facilities, including India, to secure additional engines for future growth. However, as of now no concrete plans have been finalised."
It is understood that the company is working on how to overcome the challenge of having a clear distinction for its product portfolio from that of Hyundai, which is already the second the largest car manufacturer in India after Maruti Suzuki India.
The source said, "When it comes to sales network Kia will have its own dealers."
Kia also plans to manufacture its engines in India, whenever it decides to open shop there, the source added.
Kia' global production capacity currently stands at over 3 million units while Hyundai's global production capacity is around 5 million vehicles annually.
Globally, Hyundai shares parts and vehicle underpinnings with Kia, which it acquired in 1998.
Hyundai sells several low-priced vehicles in India, which could pose a challenge in terms of market positioning for Kia, which sells a range of vehicles including a compact crossover utility vehicle brand, Sportage; an urban crossover brand, Soul; compact car Rio; and mid-size and luxury sedans under the brand names Optima, Cadenza and K900.
Kia also has hybrid and electric vehicles on offer in some countries.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.