Signing an MOU with the Andhra Pradesh government, Kia Motors has officially made its way to the Indian market. A new manufacturing facility will be set up in Anantapur, with a budget of close to $1.1 billion and construction expected to begin in latter part of 2017.
The new plant will not only manufacture Kia products for the markets abroad, but also a compact saloon and a compact SUV for the Indian market. With a production capacity of 3 lakh units annually, the 536 acre plant is expected to be ready in the second half of 2019. Which is also when Kia plans to being its locals sales in India, too.
Re the announcement and signing of the agreement, Kai’s President, Han-Woo Park 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,” he added.