Kia might invest Rs. 10,000 crore in Andhra Pradesh plant

Kia Motors, a subsidiary of Hyundai Motor Group, is keen on setting up its manufacturing unit in India. Earlier reports have indicated that the South Korean automaker has finalized the southern state of Andhra Pradesh to set up its first manufacturing facility in the country. Recent reports now indicate that Kia might make a cumulative investment of as much as $1.6 billion, which equates to around Rs. 10,300 crores in the state for its production plant.

These reports further suggest that the investment will be made in two phases, with the first phase amounting to about Rs. 6,000 crore. Post completion, the first phase of the plant is expected to have an annual production capacity of 3 lakh units. Hyundai (Kia's parent company) might utilize the new Kia facility in the initial stages in order to garner faster returns on the said investment.

The Kia manufacturing factory is expected to be set in Penukoda, in the Anantapur district of Andhra Pradesh. This location is fairly close to Hyundai's production facility in Sriperumbudur, near Chennai. The process of land acquisition is expected to commence soon, while the first car from this production plant is expected to roll out by 2019.

Source: ET