Kia India has made big preparations to further strengthen its place in the Indian automobile market. The company has announced a whopping $2 billion investment to set up a new manufacturing plant under Andhra Pradesh Investment. Due to this expansion, the production capacity of the company will increase from the current 4.3 lakh vehicles to 6.3 lakh vehicles per annum. The project is expected to create around 12,000 new jobs.
Second plant to be set up in Andhra Pradesh
Kia's new manufacturing plant will be set up at Anantapur in Andhra Pradesh. For this, the company has entered into a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh. The new plant and the facilities of the supplier companies will be developed in an area of 465 acres. The new project will greatly enhance the company's existing production system. The plant will carry out processes like stamping, welding, painting and car assembly.
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per year 2 Overproduction of lakhs of vehicles
Kia's current Anantapur plant has an annual production capacity of 4.3 lakh vehicles. The new plant will be able to produce 2 lakh more vehicles per year. Hence, after the commissioning of both the plants, the total annual capacity of the company will reach around 6.3 lakh vehicles. The new plant plans to produce cars with petrol-diesel engines as well as electric vehicles.
12,000 New employment will be created
This project is likely to boost the automobile industry in Andhra Pradesh. The expansion is expected to create around 12,000 direct and indirect jobs for Kia and its supplier partners. This can also benefit local supplier companies, auto parts manufacturing industries and the logistics sector.
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2030 Production likely to start from
According to the company, the new plant is planned to start production from early 2030. Currently, Kia's Indian portfolio includes cars like Seltos, Sonet, Syros, Carens and Carnival. The new plant will give the company more scope to manufacture new ICE and EV models in India in the future. Also, this expansion can help in increasing exports of vehicles from India to foreign countries.