South Korean carmaker Kia has declared that it will be setting up its assembling plant in Andhra Pradesh. A couple of months back, Kia was searching for an area to set up its plant in India, and it is making it arrangements to utilize the plant not just to serve worldwide markets but to move in and make a noticeable position in Indian market. Kia has signed a MoU with the government authorities of Andhra Pradesh to construct its manufacturing plant in Anantapura region.
The expansive production line will be spread over 536 acres of land and the facility will be equipped with the welding, stamping, assembly, and painting. Other than the fundamental manufacturing plant, the site will also have an ancillary part processing plants to smoothen the operations.
Development of the factory will start from the last quarter of 2017. Kia hopes to start manufacturing by 2019. The factory will have a production capacity of around 300,000 cars per year. Kia will begin advertising its product in late 2019. For setting up this plant in India, the company will be investing about $1.1 Billion to be precise.
Talking about the Anantapura plant, Han-Woo Park, president of Kia Motors, said that the new setup won’t just give noticeable adaptability to Kia’s worldwide business but additionally it will help to sell its cars in the country, which at this stage is the fifth biggest market on the planet. The Indian auto market is developing at a fast pace and more than 3.3 million brand new automobiles were sold in 2016. Based on this figures, India is all set to grab the third position in the ranking of biggest car market on the global platform by 2020.
The automaker may introduce its compact sedan and SUV as its flagship product in India. The company plans to put their cars on sale after the commencement of mass production. The production is projected to start by 2019.
It isn’t new to see that the global automakers are seeing the Indian market as an opportunity to establish their business and expand their product in India.