Kia Motors To Build Manufacturing Plant In Andhra Pradesh, India

Kia Motors have signed a memorandum of understanding (MOU) with the State Government of Andhra Pradesh, India to build a new manufacturing facility in the Anantapur District.

Construction is scheduled to begin in Q4 of 2017 and represents a USD 1.1 billion investment from Kia. The manufacturing facility is expected to begin mass production in the second half of 2019 with a total capacity of up to 300,000 units each year.

Han-Woo Park, President of Kia Motors added, “We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh. It 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.”

The Anantapur plant in India will occupy around 23 million square feet and incorporate facilities for stamping, welding, painting and assembly. The site will also be home to numerous supplier companies’ facilities.

Kia plans to produce a strategic compact sedan and compact SUV especially for the Indian market at the new plant. Kia plans to commence sales of locally produced vehicles towards the end of 2019.

India is the fastest growing major new car market and currently the fifth largest in the world, with more than 3.3 million new cars sold in 2016. Construction of the new manufacturing facility in India will enable Kia to benefit from localising sales and bolster growth, both locally and internationally.