Kia Choosing Site for Indian Production Plant

kia optima sedan

Kia choosing site for production plant in India for its market entry in two or three years; a location in Andhra Pradesh could be finalised by September

Kia is the South Korean automaker known for manufacturing affordable cars and compact vehicles. In recent years, its popularity in Europe has grown tremendously and subsequently the plans to India surfaced a few months ago. In another report, with two people in-the-know seeking anonymity, said the company has come as far as choosing a site for its local production facility.

Following the rumours in March that the Hyundai-owned subsidiary will be entering the Indian market in the next two or three years, the Kia Venga was spotted testing in Chennai. The test mule of the five-door mini MPV could have been sent for exploratory runs and understanding the varying road conditions prevailing in India.

Also Read: Kia Venga Spotted Testing In India

KIA Soul

The manufacturing site will be chosen next month said the report emerged on Economic Times and the vehicle roll out will begin in 2019. The brand which sold over three million vehicles worldwide last year could be initially setting a target of 300,000 units. Hyundai and Kia synergy could do wonders in India considering the popularity and the title of being the largest exporter of passenger cars locally of the parental brand.

Moreover, the partnership failed to meet annual target last year as sales fell by two per cent in H1 2016 and an emerging market like India could be the perfect road ahead with markets like China, Brazil and Russia hitting troubles.

Also Read: KIA Introduces Four New Concepts at SEMA 2015

KIA Sportage

The investment Kia will be making is yet undecided, so as the products to be introduced. Kia is more likely to finalise the plant location in September with a vast site in Andhra Pradesh, Maharashtra and Gujarat are under evaluation. Andhra Pradesh is reportedly the favourite among them as the state lies close to Hyundai’s base in Sriperumbudur near Chennai. With plants in United States, China, Slovakia and recently Mexico, Kia’s more than half of manufacturing is being done at its home factory in South Korea.

Also Read: Kia Motors Set To Enter India In The Next Two Or Three Years

Kia Sedona

Hyundai will be finding it difficult to differentiate both brands; especially due to the fact that they will be competing in similar segments. For the success of Kia, positioning the models will hold the key.

Source: EconomicTimes