Kia Motors builds new production facility in India

An agreement between Kia Motors and the government of Andhra Pradesh on the construction of the new plant was signed in April 2017. Construction work on the new facility began in late 2017 and marks Kia Motors’ first investment in India with a total value of $1.1 billion. Production is scheduled to start in the second half of 2019 and annual capacity is expected to reach 300,000 units. The plant site covers an area of approximately 2 square kilometers and has facilities for stamping, welding, painting and assembly. There are also numerous Kia suppliers on the site. In the new plant, Kia is building two new models, a sedan and a compact SUV, both exclusively for the Indian market.

According to Kia Motors Chairman Han-Woo Park, the Andhra Pradesh plant is the company’s most modern and advanced. “By opening up the Indian market, currently the fifth largest in the world, we can consistently pursue our global strategy as an international automaker,” Park continued.
The new plant in Anantapur will enable Kia to sell its models in India and benefit from market growth. The company plans to launch sales at the end of 2019, once series production begins. Kia justifies its location decision for Anantapur with the existing network of suppliers and the good availability of qualified employees. India is the fastest growing automotive market with more than 3.3 million new vehicles sold in 2016 and number five worldwide. Forecasts predict that by the end of 2020 India will be the world’s third largest automotive market after China and the USA.