Seoul-based Kia Motors Corporation will be signing a memorandum of understanding (MoU) with the Andhra Pradesh government on Thursday for setting up a greenfield manufacturing facility in Anantapur district. The new facility is being set up with an investment of $2 billion and marks the company’s entry into India. Kia Motors is South Korea’s second largest automobile manufacturer after Hyundai Motor Company. “The MoU will be signed in Vijayawada in the presence of AP chief minister N Chandrababu Naidu tomorrow,” a highly-placed government official told FE. “This is Kia Motors’s ultra-mega integrated project which will add to the AP’s fast developing automotive ecosystem and will have a spin-off effect on the industrial development and employment in the region,” the official pointed out.
“The project is likely to commence work in the final quarter of 2017. The facility is expected to begin production in the second half of 2019 and produce upto approximately 300,000 units each year,” the official added.
Kia Motors Corporation is Korea’s oldest manufacturer of motor vehicles. The company was founded in 1944 and currently produces over three million vehicles a year from 14 manufacturing and assembly units in five countries. Kia has over 51,000 employees worldwide and an annual revenues of $45 billion.
In Andhra Pradesh, Kia Motors along with his associates and vendors, will be setting up a greenfield car manufacturing facility in Erramanchi in Anantapur district with a total investment of $2 billion. Kia will produce strategic compact sedan and compact SUVs, especially for the Indian market at the new plant. The unit will incorporate facilities for stamping, welding, painting and assembly.
Kia Motors will also establish a township for their employees and an advanced training centre. The project is expected to generate employment for over 10,000 people, both permanent and temporary. The proposed manufacturing facility will enable Kia Motors to sell cars in the world’s fifth largest market while providing greater flexibility of its global business. The worldwide demand for Kia cars is growing and this is its latest step towards becoming a leading global car manufacturer.