Kia Motors to invest Rs 13,000 crore in India

Kia Motors to invest Rs 13,000 crore in India

Kia Motors to invest Rs 13,000 crore in India

South Korean automobile giant Kia Motors Corporation on Thursday stated its commitment to invest around $2 billion (Rs 13,000 crore) in  India  by 2021, even as it commemorated the first framework installation of its forthcoming plant in Ananthpur district of Andhra Pradesh.

Kia has already invested $1.1 billion (over Rs 7,000 crore) in the said facility, which covers an area of 213.7 hectares. Once fully operational, the plant “ located in Yerramachi village “ will boast of an annual capacity of 3,00,000 units, and provide jobs to almost 3,000 people.

It was in April 2017 that Kia signed an MoU with the Andhra Pradesh government, following which work on the facility commenced in early-June. Construction is expected to see completion by the end of the first quarter of next year, with vehicle production earmarked to begin in 2019.

"Kia Motors has big plans for  India  and the company has already made significant investment in this plant. By 2021, we would be investing $2 billion (Rs 13,000 crore), which would help create more than 10,000 jobs," Kia Motors Corporation President and  Chief Executive Officer  HanWoo  Park  said.

The SP Concept SUV, which Kia Motors India recently showcased at the Auto Expo 2018, will be the first model to roll out of the facility.

Meanwhile, the company is currently in discussion with the AP government to start a joint training programme at the state government level to develop the necessary manufacturing skills among local residents.  

Andhra Pradesh Chief Minister N Chandrababu Naidu, who graced the framework installation ceremony, envisioned his state turning into a mega auto hub in the country.

"In the last three and a half years, we have attracted a lot of auto companies. Along with Kia, Hero MotoCorp, Isuzu, and Ashok Leyland, are some of the companies that have shown interest in our state. Till date, we have seen Rs 27,600 crore in investment in this regard," Naidu said.

 

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