KIA TO SET UP MANUFACTURINg PLANT IN INDIA
Korean car-maker KIA, a subsidiary of the automotive giant Hyundai Motor Company is contemplating
entering the Indian market.
According to
Reuters, KIA Motors will finalise a location for their first production plant
in India next month. Reports suggest that it will be located in Andhra Pradesh, so as to have a close proximity with sister
brand Hyundai’s plant located in the outskirts of Chennai.
The new manufacturing facility is expected to be a state-of-the-art unit
with highly automated processes being deployed for high precision manufacturing
of cars. Operations are expected to commence
in 2019, and the plant will be capable of producing 300,000 vehicles
a year.
KIA’s products for India would share platforms with Hyundai’s
established models, which are almost fully localized in the market.
KIA and Hyundai together form the 5th largest automotive conglomerate in
the world and have an aggressive growth plan to keep rising up the ladder with
time. Even still, the Korean giants have faced a slight de-growth in their
business for the first time ever since 2008. The duo saw a decline of 2 per
cent in their annual sales targets in 2015 due to a slowdown in major markets
like China, Russia and Brazil.
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