February 22, 2018
The automaker is setting up the plant in Andhra Pradesh at an investment of US$1.1 billion to support annual production capacity of 300,000 units.
The South Korean company debuted in India, one of the world’s fastest-growing automobile markets, at the New Delhi Auto Expo 2018.
At Auto Expo, KIA had showcased a variety of vehicles from an SUV, the SP Concept, to an all-electric compact vehicle designed specifically for India.
The company’s entry into India comes at a time when the country’s entire automotive sector is touted to move to the electric platform.
Kia Motor Corp plans to hire around 3,000 staff for its new manufacturing facility in the Indian state of Andhra Pradesh. The South Korean automaker is setting up the plant at an investment of US$1.1 billion to support annual production capacity of 300,000 units. The company debuted in India, one of the world’s fastest-growing automobile markets, at the New Delhi Auto Expo 2018. Kia Motors’ first vehicles are expected to roll out in 2019. The plant will ensure timely and smooth provision of Kia vehicles that boast world class levels of quality and design. While the model names have yet to be announced, Kia plans to produce a strategic compact sedan and compact SUV at the plant.
The models have been decided in line with consumer preference in India. Kia Motors has signed a memorandum of understanding with the State Government of Andhra Pradesh, India to build a new manufacturing facility in the Anantapur District. The plant will be spread over 23 million square feet. The company is also in talks with the State Government to develop a training platform for the future staff of the plant. The company is estimated to employ around 10,000 vehicles by 2021. At the Auto Expo, KIA Motors had showcased a variety of vehicles from an SUV, the SP Concept, to an all-electric compact vehicle designed specifically for India that will be launched between 2019-21.
Kia’s entry into India comes at a time when the country’s automotive sector is going through a phase of massive disruptive innovation. The Central Government has announced an ambitious plan to move the country’s entire automotive system to the electric platform. This has offered lucrative opportunities to private and foreign automakers and infrastructure developers. India is the sixth largest producer in the world with an average annual production of 24 million vehicles in 2016. The nation has the fifth largest passenger vehicle and commercial vehicle market in the world. The labour-intensive sector contributes to 7.1 per cent of India’s Gross Domestic Product by volume.