1. Jayalalitha woos Hyundai KIA Motors with land in Tamil Nadu

Jayalalitha woos Hyundai KIA Motors with land in Tamil Nadu

The Tamil Nadu government has offered 390 acres of land to KIA Motors, part of Seoul-based automobile manufacturer Hyundai Motors. KIA Motors has been scouting for locations for setting up a factory in India and had surveyed some sites in Tamil Nadu and Andhra Pradesh.

By: | Chennai | Published: August 12, 2016 7:25 AM
 Jayalalithaa said though the chief ministers of Andhra Pradesh and Karnataka, N Chandrababu Naidu and Siddaramaiah, had met investors in the state and offered sops like free land, no company has left Tamil Nadu. (PTI) Jayalalithaa said though the chief ministers of Andhra Pradesh and Karnataka, N Chandrababu Naidu and Siddaramaiah, had met investors in the state and offered sops like free land, no company has left Tamil Nadu. (PTI)

The Tamil Nadu government has offered 390 acres of land to KIA Motors, part of Seoul-based automobile manufacturer Hyundai Motors. KIA Motors has been scouting for locations for setting up a factory in India and had surveyed some sites in Tamil Nadu and Andhra Pradesh.

Tamil Nadu industries minister M C Sampath said the state government was hopeful that the automobile maker would set up the manufacturing unit in the state.

“After visiting Tamil Nadu, they asked us about 400 acres of land, and we have offered about 390 acres. I am hopeful that they will set up the factory in Tamil Nadu,” he told the State Assembly.

Top officials from Kia Motors had recently visited various sites in Tamil Nadu and Andhra Pradesh with a view to find suitable land parcels for establishing a manufacturing facility, according to sources.

The company is reportedly mulling over setting up a factory with annual capacity of 3,00,000 units. Hyundai has a facility at Sriperumbudur, about 40 km from here. KIA Motors sells several models, Sportage, Optima, Cadenza, Soul, globally and has manufacturing facilities in Korea and Mexico.
Kia Motors Corporation’s July 2016 global sales figures (export sales, domestic sales and sales from overseas plants) for passenger cars, recreational vehicles (RVs) and commercial vehicles had recorded a total of 2,42,758 units. This figure represents a 5.4% year-on-year increase compared to the same month of 2015.

Meanwhile, state chief minister J Jayalalithaa has denied reports that investors or businesses were moving away from the state to neighbouring Karnataka and Andhra Pradesh. Jayalalithaa said though the chief ministers of Andhra Pradesh and Karnataka, N Chandrababu Naidu and Siddaramaiah, had met investors in the state and offered sops like free land, no company has left Tamil Nadu.

“If a business has to be profitable in a state, the first requirement is proper maintenance of law and order which is in the best shape in Tamil Nadu. Secondly, as far as power is concerned, Andhra Pradesh and Karnataka are in a situation of buying power from us,” she said.

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