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Kia Motors facility to come up in Andhra Pradesh

Kia Motors facility to come up in Andhra Pradesh
Nikhil Puthran Nikhil Puthran Tuesday 18 April 2017, 18:17 PM

Kia Motors has been planning to enter the Indian market for quite some time now. This time around, the automaker is planning on setting up a facility in Andhra Pradesh at an investment of Rs 10,300 crore. The investment will be done in two phases, wherein the first phase amounts to Rs 6,000 crore. The facility will begin operation in 2018, while the first car will be rolled out in 2019. To begin with, production will be limited to three lakh units per year, which will be increased over time.    

Going forward, Kia might continue using the existing set of vendors which is used by Hyundai Motors. The automaker will enter the Indian market with a hatchback, a sedan and an SUV. Though there is no official announcement on which car will be launched, it could be the Picanto, which was showcased at the Geneva Motor Show. Kia’s debut in the country will also ensure that Hyundai’s manufacturing capacity in India will be optimally utilized.

Currently, Isuzu is the only one to have a plant setup in Andhra Pradesh and soon Kia Motors will be second one to do so. Before finalising on Andhra Pradesh, the automaker also considered other states like Gujarat, Karnataka as well as Tamil Nadu. This new facility is not too far off from Chennai’s automobile hub, where a majority of automakers like Hyundai, Renault Nissan, Mercedes Benz, BMW, Ford and Ashok Leyland produce their vehicles.

Hyundai currently holds the position of being the second largest automaker in the country, after Maruti Suzuki. Kia’s debut in the country will open new avenues for the automaker while also enabling it to strengthen its foothold in the Indian market.

 

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