Kia Motors is all set to enter India. The South Korean auto maker is prepping up to set up a manufacturing plant in India. Kia is a sub-brand of Hyundai motors and it’s been a while since Hyundai started business in India. Now even Kia Motors is also looking forward to start manufacturing of SUV compact and compact sedan. Kia Motors is investing a hefty amount of $1.1 billion which is around Rs 7000 crore.
This new manufacturing plant of Kia Motors will have a capacity of producing over 3lakh units per year. Kia will set up the plant in Ananthapur district of Andhra Pradesh. Kia motors chief executives will meet AP government officials and will sign the official memorandum of understanding. The construction of new plant will commence by the end of 2017.
The production of the cars will be started by 2019 and the plant will also export cars from India to other countries. Kia will produce compact sedan and SUV’s exclusively for Indian markets. This is good strategic alliance by the South Korean firm. India is grabbing opportunities like never before and the foreign companies are showing interest to set up manufacturing plants in India as is cheaper to set up manufacturing plant in India.
Indian PM Narendra Modi’s Make in India movement is getting a good response from the foreign countries. After setting up the $1.1 billion dollar plant in Andhra Pradesh, plenty of jobs will be created for the locals. The plant has various facilities like assembling, painting, welding, stamping and few other functions. Kia motors are looking to grab the opportunities in India as it is the fifth largest car market in the world.
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In 2016, around 3.3. Million new cars were sold in India. By the end of 2020, India will become the third largest automobile market in the world. Kia is currently producing 3million cars per year and with the new plant in AP, its production capacity will be increased even further. However Kia Motors need to build something interesting as Indians will not get attracted to the new brands pretty soon unless they offer something better than the existing ones.