Kia Motor corporation has officially announced its plans to enter the cut throat Indian market, while production will begin in 2019. Kia Motors signed a memorandum of understanding (MOU), with the state government of AP, to build a new manufacturing facility in the state.
The company’s first manufacturing facility will be built in Anantpur district in Andhra Pradesh, with approximately an investment of USD 1.1 billion, spreading across 536 acres of land. It will consist of in-house facility like stamping, body shop, painting, welding and assembly.
The construction of the plant will begin in late-2017 and it should be ready during the 2nd half of 2019. The plant will have a capacity to produce about 3,00,000 cars per year helped by its fast developing supply chain network and skilled labour force.
The company has also stated that it will make a compact sedan and compact SUV concluding that these 2 models will be the first to enter production. Kia Motors, being one of the world’s fastest growing brands, will be well-aware that these 2 segments have a strong pull on the Indian market in recent times.
The company will also be looking to seek some tips, from parent company Hyundai, who bought them in 2003 and have a great reputation and dealer network here. The company is also the 2nd largest automobile manufacturer in South Korea, behind Hyundai, and just like its parent could make India the manufacturing hub for other markets as well.
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