Kia Motors has announced the signing of a memorandum of understanding with a state government in India to build a new manufacturing facility in the Anantapur District.
The memorandum was signed with the state government of Andhra Pradesh. It involves the construction of a new manufacturing facility and represents an investment of approximately $1.1-billion, according to Kia.
Construction is due to start in the final quarter of 2017, with the factory expected to commence production in the second half of 2019, producing up to 300 000 units a year. The plant will cover about 23 million square feet and incorporate facilities for stamping, welding, painting and assembly.
The Korean automaker also revealed plans to produce a “strategic compact sedan and compact SUV”, tailored to the needs of the Indian market, at the new plant.
“We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh,” said Han-Woo Park, president of Kia Motors.
“It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer.”
The automaker said it planned to commence local sales of cars produced at the new facility “towards the end of 2019”, once mass production has kicked off in Anantapur.
