Kia Motors has outlined plans to invest around US$ 2 billion in setting up its plant in India and developing a supplier base for their operations. Of this investment, almost 1.1 billion dollars will be put into their factory in Andhra Pradesh. In the process, the company hopes to generate between three and four thousand jobs.
Reports in Indian media attribute the information to Tae-Hyun Oh, the chief operating officer of the brand’s international business. The company will be additionally spending in areas of marketing and operations.
Kia Motors is a late mover into India’s growing passenger vehicle market, largely due to the strong position that Hyundai Motors has occupied. However, Kia now expects to begin operational in 2019 and to hit the plant’s peak capacity of 300,000 units a year by 2022. Towards this end it plans to offer an initial three model line-up, the first of which will be a compact SUV that is targeted at the Hyundai Creta segment.
Kia sold around 3 million units worldwide in 2016 and hopes to use its entry into India and Mexico (last year) to substantial raise this figure. As for the Indian market, Kia will push for a high degree of local content to reduce costs. “The product will be made in India and made for India,” Oh said.