MUMBAI, India – Kia Motors has signed a memorandum of understanding with the state government of Andhra Pradesh in India to build its first a production plant there.
The MOU, signed on April 27 2017, represents a US$1.1-billion investment for building which will start the final quarter of 2017, begin production in the second half of 2019, and assemble 300 000 units a year of “a strategic compact sedan and compact SUV especially for the Indian market”.
FIFTH-LARGEST GLOBAL MARKET
Han-Woo Park, Kia Motors’ president said: “We will be able to sell cars in the world’s fifth-largest market and be more flexible in our global business. Demand for Kia cars is growing – this is our latest step to becoming a leading global automaker.”
India is the fastest-growing major new car market and the world’s fifth largest. More than 3.3-million new cars were sold there in 2016 and Kia suggests that the country become the world’s third-largest car market by the end of 2020.