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Kia Motors India, part of the Korean automotive major Kia Motors, has outlined plans to invest about $54 million in the manufacturing facility at Anantapur in Andhra Pradesh.
During a programme hosted by the Andhra Pradesh Chief Minister YS Jagan Mohan Reddy to seek suggestions for investments, Kookhyun Shim, Managing Director and Chief Executive Officer of Kia Motors India, said, “The company will invest another $54 million in the upcoming project in the manufacturing facility at Anantapur in spite of the tough phase due to the cornonavrus pandemic.”
Good infrastructure
The CEO, while lauding the support extended by the Andhra Pradesh Government in making its India foray successful with the new manufacturing plant, said this would not have been possible but for the infrastructure created, including highways and good logistics facilities covering airport and ports and quality industrial infrastructure.
“Kia has made big success in the Indian car market within 10 months of commissioning of the automotive plant and start of production. As we progress, we will invest more and explore new opportunities,” he said.
Shim said, Kia Motors and its vendors have employed more than 14,000 people, majority of them from within Andhra Pradesh. More than 2,400 people were trained by the Kia training facilities, of whom, 1,589 have been employed in Kia.
Referring to the investment climate in Andhra Pradesh, the Kia CEO said, Andhra Pradesh has good infrastructure and logistics facilities and the Kia Motors plant serves as a model for those seeking to make investments in the State.
Successful launch
Currently, Kia Motors India manufactures Kia Seltos, a popular SUV with good sales volumes.
In the second half of the current year, it is gearing up to launch its compact SUV Sonet in the Maruti Vitara Brezza segment.
As per plans, Kia Motors India expects to roll out one new car every six months and by early next year, the company will have at least four vehicles in its ‘Made in India’ portfolio.
Kia and its vendor partners have made huge investments in India with a capacity to produce about 3,00,000 vehicles per annum. The Korean company recently commenced production at the facility after a near two month lockdown due to the pandemic.
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