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Kia Motors to set up its facility in Andhra Pradesh

April 18, 2017, 05:05 PM IST by Nikhil Puthran
Kia Motors to set up its facility in Andhra Pradesh

Hyundai-owned subsidiary Kia Motors is reportedly planning to set up its manufacturing facility in Andhra Pradesh. The facility is expected to be setup at an investment of Rs 10,300 crore and the first phase of investment will amount to about Rs 6,000 crore. Operations at the plant is expected to begin in 2018, while the first car is expected to be rolled out in 2019. Initially, the production capacity will be limited to three lakh units per year and will be increased over time.

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

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 finalizing Andhra Pradesh, the automaker also considered other states like Gujarat, Karnataka as well as Tamil Nadu. The 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. 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.

Kia’s debut in India will also mean that Hyundai will further strengthen its foothold in our domestic market. Currently, running at the position of being the second largest automaker in the country, the move will surely help the brand strengthen competition against the India’s largest automaker, Maruti Suzuki.

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