▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 30, 2024

Automobiles

Kia likely to build first India plant in Andhra Pradesh: report

  • PUBLISHED :February 08, 2017 - 13:58
  • UPDATED :February 08, 2017 - 15:08
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] South Korea’s second largest automaker Kia Motors is likely to pick Andhra Pradesh state as the site to build its first India factory and announce the decision by end of this month, according to media reports on Feb. 8. 

Citing multiple sources, Reuters reported Andhra Pradesh has become the most likely venue to build the new plant, given its proximity to Tamil Nadu state, where Kia’s bigger corporate cousin Hyundai Motor’s two plants are located. 

The state government has provided about 600 acres (243 hectares) of land to Kia Motors for the new facility. The automaker plans to manufacture small sedans and compact sport utility vehicles at the plant beginning July 2019, according to the report. 


Hyundai Motor Group Chairman Chung Mong-koo visits Hyundai Motor`s plant in Chennai, India.



Related: 
Hyundai chief denies plans for new US plant 


Kia Motors is looking to invest US$1 billion in India over 3 years for the new plant which is expected to roll out 300,000 units annually, CNBC-TV18 said. 

The news came after months of speculation over Kia’s entry into India as the automaker is seeking to make inroads into one of the fast growing auto markets in the world for new growth. Market watchers expect India’s passenger vehicle market to break into double-digit growth this year, outpacing China’s growth soon. 

On Feb. 7, Kia Motors President Park Han-woo told reporters that the automaker is in the process of picking a site for its facility in India, adding he will announce the decision when it is ready. 

Park, who formerly headed Hyundai Motor’s Indian unit, has affirmed the company’s plant to enter India multiple times, saying going to the country is the right path. 

If the Indian plant is confirmed, it would be Kia’s fifth overseas plant after the US, China, Slovakia and Mexico.

By Ahn Sung-mi (sahn@heraldcorp.com)

EDITOR'S PICKS