Kia Motors claims that the construction of its first manufacturing facility leads to an approximate investment of US$1.1 billion investment, and will commence in the final quarter of 2017.
Making its India plans official, Kia Motors' President Han-Woo Park, said, "We are delighted to announce that Kia's newest manufacturing facility will be here in Andhra Pradesh".
Kia is part of the Hyundai group, which is already India's second biggest vehicle maker with 20% of the market.
Kia is the latest automobile manufacturer to bet big on India-Hyundai Motor Co., Ford Motor Co., General Motors Co., Toyota Motor Corp. and Honda Motor Co. all are battling for a bigger share in the fast-growing market.
"The Chinese market in the first quarter was hard due to Kia's conflict with local dealers and the ongoing political issue that dropped consumer demand", Han Chun-soo, Kia's chief financial officer, said during a conference call after the automaker's first-quarter earnings report.More news: Texas Lawmaker on a Hunger Strike to Protest Anti-Sanctuary City Bill
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Kia says it plans to commence local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur.
Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart, constructive criticism. The site will also be home to numerous supplier companies' facilities.
Kia will invest Dollars 2 billion on this plant which will have a capacity to manufacture 3 lakh cars per annum. Today is the day, when Kia confirmed that they are entering India, with their plant to be located in the state of Andhra Pradesh. Although Kia was once one of the most popular brands in China - with its K3 model the 12th best-selling vehicle there - its sales began falling in March, the company said. Forecasts suggest the country will become the third-largest auto market by the end of 2020. On the cards are a compact sedan and a compact SUV that will comprise of Kia's initial product portfolio in India.
Kia's sales in March 2017In March 2017, Kia sold a total of 238,222 vehicles comprising passenger cars, recreational vehicles and commercial vehicles. Kia will launch a new plug-in hybrid model of the Niro in an attempt to expand Kia's presence in overseas SUV markets.
SAIC, biggest auto maker in China, and France's PSA are also preparing for an India entry.