Kia confirms: its 5th overseas plant will be built in India
Kia has officially confirmed the recent rumors and it announced that its fifth production plant outside the Korean border will be built in India.
A Hyundai Group spokesman has anticipated that soon Kia will sign an agreement with local authorities to build a factory in the Indian state of Andhra Pradesh through an initial investment of the equivalent of almost 1 billion dollars.
The factory will be operational from 2019 with the capacity of about 300,000 units a year. If the market conditions will permit, Kia has already planned to double its assembly rhythms with additional investments that will reach 1.6 billion dollars.
Kia was looking for a location to directly produce in India since 2014 and now it has chosen Andhra Pradesh, a region bordering with Tamil Nadu where it is already active since some time (in Chennai) a Hyundai factory, operating on two shifts with an annual capacity of 650,000 units.
With the opening of the Kia factory, the annual production capacity of the entire Hyundai Group in India will rise, therefore, to almost 1 million cars. The official headquarter has not yet been confirmed, but the fifth of Kia foreign plants should be built in Penukonda in the Anantapur district.