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Kia plans to reach full capacity at its Andhra plant by 2022

Auto News - Published on Wed, 12 Dec 2018

Image Source: The Economic Times
ET reported that Kia Motors, the world’s eighth-largest carmaker and a new entrant to India, expects its new facility in Andhra Pradesh to reach 100% capacity utilisation by 2022. The Korean automaker said it would manufacture complete vehicles in India and ruled out any plans to import kits and assemble those locally. Manohar Bhat, head of sales and marketing at Kia Motors India (KMI), said “They will be made in India, otherwise there is no point in having a USD 1.1 billion (INR 7,800 crore) investment in making a plant here.”

The plant, when completed, will have an annual capacity to produce 3 lakh vehicles. To reach a sufficient number of buyers to meet its target of selling 3 lakh cars a year in India by 2022, the company is establishing a deep network of customer touchpoints, going to even small cities and towns.

KMI is the Indian subsidiary of the Seoul-based Hyundai-Kia group. While Kia and Hyundai share vehicle underpinnings to bring down development cost, both companies function independently, their products often competing against each other in the market.

Kia’s first vehicle in India will be a midsize sports utility vehicle based on the SP2i concept that the company showcased at the Delhi Auto Expo earlier this year. Priced between INR 10 lakh and INR 16 lakh, it will compete directly against the Hyundai Creta, Renault Duster and the Maruti Suzuki S-Cross. The second product is expected to be a sub-4 metre SUV.

Source :

Posted By : Joykumar Irom on Wed, 12 Dec 2018
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