Kia motors has officially said that it will make an entry into the Indian market and in this regard has announced that it has signed an MOU with the government of Andhra Pradesh to build a plant at Anatapur near Vijayawada.
One of the oldest manufacturers in South Korea, Kia has said that it will invest around USD one Billon for the construction of the plant and will commence work on the same from fourth quarter of 2017. The proposed 536 acre plant is expected to be ready in 2019 with the company aiming to produce 300,000 units a year from this facility.
Taking the approach of bringing tailor made products for the India, the automaker has said that the plant will produce a India specific compact sedan and compact SUV. In addition the facility will also have facilities for vendors, stamping, welding, painting and assembly.
Commenting on the occasion, 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. Our new India plant 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.”
