Kia Motors to Come to India, Plans to Build Manufacturing Plant in Andhra Pradesh

Kia Motors have shared their plans of entering into the Indian market and have signed an MOU to build a manufacturing plant at Anantapur near Vijayawada in Andhra Pradesh.

The South Korean automaker has plans of investing around Billion dollars for the building of the plant and will start work on the same from fourth quarter of 2017. The planned 536 acre plant is expected to be ready in 2019 with the manufacturers aiming to produce 300,000 units a year from this plant.

Adapting the approach of bringing custom made products for the Indian market, the automaker has said that the plan will manufacture India specific compact sedan and compact SUV.

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.”

Kia Motors is the sister concern of the second largest car manufacturer in India- Hyundai. Kia Motors is the 9th largest car manufacturer in the world, selling over 30 lakh cars and has 14 manufacturing plants across the world. Hyundai is considered as a pocket-friendly brand and therefore Kia would have to take the premium position to build an identity for itself.

In addition, Hyundai-Kia will have to take into consideration the Skoda-Volkswagen and Renault-Nissan-Datsun cases in India where the multi-pronged approach has not really worked in attracting India customers.

Hyundai’s learnings in India over the years would surely assist the Kia strategy. In addition, Kia’s global reputation with the SUVs might prove helpful for the Korean car maker.

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