Kia Motors begins trial production at AP plant

The company has invested $1 billion in the facility which has come up in Erramanchi village in Anantapur district, about 200 km from Bengaluru. Ancillary units have invested another $1 billion in two vendor parks in the region. The total investment of $2 billion is billed as one of the largest Foreign Direct Investment (FDI) in the country in automobile sector.

The state-of-the-art facility, which has come up over 536 acres of land in a record time of 14 months, will manufacture 300,000 vehicles annually, with the bulk of the capacity catering to domestic market.

Kia marked the start of trial operations with a launch ceremony at the Anantapur plant, in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu and South Korean Ambassador Shin Bongkil, President & CEO of Kia Motors Corp Han-Woo Park and MD and CEO of Kia Motors India Kookhyun Shim.

Kia Motors, the world’s eighth-largest automaker, will start the manufacturing with SP2i, a SUV based on the Kia SP Concept, first showcased at India’s Auto Expo 2018. “The SP2 is inspired by India and combines everything Indian customers need and desire in a car. We are confident that the SP2 will redefine the SUV segment in India with its futuristic design and competitive features and pricing,” said Park.

He said India would play a singularly important role in expanding Kia Motors’ global footprint. “Commencing trial production is a significant moment that we have been preparing for, as we take on the challenges of future mobility across the country,” he said. “Today, we officially begin our journey to become one of the top five automakers in India by 2021, with a new model that will appeal to forward-looking and outgoing Indian buyers,” said Shim.