KIA expands with new manufacturing plant in India
Construction of the first KIA Motors manufacturing facility in India, an investment of approximately $1.1 billion, will commence in the final quarter of 2017. The memorandum of understanding (MOU) was signed with the State Government of Andhra Pradesh, India.
The manufacturing facility is expected to begin production in the second half of 2019 and produce up to approximately 300,000 units each year.
The new plant will occupy around 23 million square feet (2.16 km2/536 acres) and incorporate facilities for stamping, welding, painting and assembly. The site will also be home to numerous supplier companies’ facilities.
Manufacturing in the fastest-growing major new car market
KIA plans to commence local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur. Furthermore, the region’s fast-developing supply chain network and skilled labour force were other key reasons for the new investment by KIA Motors.
India is the fastest growing major new car market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016. Forecasts suggest the country will become the third-largest car market by the end of 2020.
