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27
April 2017
Making
a foray into the Indian market, South Korean auto major Kia Motors on Thursday
said it will set up a car manufacturing plant in Andhra Pradesh with an
investment of $1.1 billion.
The
plant, Kia's first in India, will come up in Penugonda in Anantapur district
and produce three lakh cars a year. The Total
Investment & Insurance Solutions
The
work on the facility will start towards the end of 2017 and the production is
expected to commence in the second half of 2019. The Total Investment & Insurance Solutions
The
company on Thursday signed a memorandum of understanding (MoU) with the Andhra
Pradesh government in the presence of Chief Minister N. Chandrababu Naidu.
"Kia
plans to produce a strategic compact sedan and compact SUV especially for the
Indian market at the new plant, which 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," said a
company statement.
The
state government has allotted 600 acres of land for the plant, which will
provide direct employment to 10,000 people. The Total Investment & Insurance Solutions
According
to the Korean car market, India presents an opportunity for further sustained
growth in the fifth largest new car market in the world.
"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," said Han-Woo Park, President of Kia Motors. The Total Investment & Insurance Solutions
Kia
plans to commence local sales of cars produced at the new facility towards the
end of 2019, once mass production begins in Anantapur.
It
said the region's fast-developing supply chain network and skilled labour force
were other key reasons for the new investment. The Total Investment & Insurance Solutions
The
firm earlier scouted others states like Tamil Nadu, Maharashtra, Gujarat,
Madhya Pradesh and Telangana but preferred Andhra Pradesh.
The
company said construction of a new manufacturing facility in India will enable
it to maintain its position as one of the world's fastest-growing automobile
brands.
With
this the company will start selling its models in India, and benefit from
further sustainable sales growth, locally and internationally.
India
is the fastest growing major new car market and the fifth largest in the world,
with more than 3.3 million new cars sold in 2016.
Forecasts
suggest the country will become the third-largest car market by the end of
2020, it added. The Total Investment & Insurance
Solutions
Founded
in 1944, Kia Motors is Korea's oldest manufacturer of motor vehicles and
manufactures over three million vehicles a year at 14 manufacturing and
assembly operations in five countries. The vehicles are sold in 180 countries. The Total Investment & Insurance Solutions
Kia
has over 51,000 employees worldwide and annual revenues of over $45 billion.The Total Investment & Insurance Solutions
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