Kia Motors Corporation, a subsidiary of the Hyundai-Kia Automotive Group which is also one of the fastest growing automobile brand and the second largest automobile manufacturer in South Korea has officially announced its entry into the Indian auto market.
Kia Motors signed a memorandum of understanding (MOU) with the State Government of Andhra Pradesh, India to build a new manufacturing facility. The MOU was signed at a ceremony held in the city of Vijayawada and was attended by executives from Kia Motors and the Chief Minister of Andhra Pradesh.
Kia Motors’ first manufacturing facility will be built in Anantapur District with an approximate investment of USD 1.1 billion and will spread across 23 million square feet (536 acres). It will have all the required facilities in-house such as stamping, welding, body shop, painting and assembly. Numerous suppliers will also be located inside the plant’s perimeter. The region’s fast-developing supply chain network and skilled labour force were the key reasons for selection of this location.
The construction of the plant will begin in the final quarter of 2017 and it should be ready for production by the second half of 2019. The Kia Motors Indian plant will have a capacity to produce around 3,00,000 units per year.
Han-Woo Park, President of Kia Motors said, “We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh. It will enable us to sell cars in the world’s fifth largest market while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer.”
The company has mentioned that the first two models to enter production will belong to the compact sedan and compact SUV body styles. Both this segments have seen a tremendous growth in the last few years.
India is the fastest growing car market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016. It is predicted that India will emerge as the third-largest car market by the end of 2020. Entering the country will enable Kia Motors to benefit from regional sales and further, the company will also work towards making India the manufacturing hub for other markets as well.
Kia Motors India Entry – Image Gallery
