Kia announces India entry, to set up plant in Anantapur

After a series of speculations regarding its plans to enter the Indian car market, Kia Motors has now officially announced its India entry. In an official statement released, the automaker has revealed that it is aiming to set up a manufacturing facility in Andhra Pradesh, while mass production of its cars in India is expected to commence from 2019.

Kia has signed a Memorandum of Understanding (MoU) with the State Government of Andhra Pradesh for setting up a production facility in the Anantapur district. Kia will be investing US$1.1 billion in the construction of the said manufacturing base, which will be spread over an area of 536 acres. The company is planning to start construction from the last quarter of this year, with production slated to commence from the second quarter of 2019. Kia is aiming an annual production capacity of 3 lakh units from its Anantapur plant.

While comprehensive details about what all models will be introduced in India under the Kia brand haven't been revealed yet, the automaker has announced that the first two products will be a compact sedan and a compact SUV. Kia is also stressing on differentiating itself from its owner company - Hyundai, in the Indian market. As a result, the carmaker will differentiate itself from Hyundai in all major operational procedures - product, advertisement and dealership network.