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Kia to finalize India plant location next month

Kia Niro Hybrid Crossover

Hyundai is most likely to use Kia’s upcoming facility to ease pressure off its Chennai plant.

Kia’s interest in entering India with a local manufacturing facility has been in the new for quite some time now. Hyundai’s sister brand has acknowledged earlier that it is exploring several new markets and India is one of them.

Reuters reports that Kia would be finalizing on the location of its Indian plant in August and an official announcement would be made in September. If things go as per the plans, the infrastructure would be operational in 2019.

Kia Telluride Concept

Kia India’s product plans are unclear as of now.

People in the know have reported that three locations have been shortlisted. States of Tamil Nadu, Andra Pradesh and Gujarat are said to be wooing the South Korean automaker. Reuters’ sources also inform that Andra Pradesh is the front-runner as of now.

It would be ideal for Kia to set up a factory in a place where it can take advantage of Hyundai’s well-established vendor network. A region in Andra Pradesh, bordering Tamil Nadu, is likely to be the final location for Kia’s India plant.

KIA Pacwest Concept 2015 Sema (4)

The new Kia plant would be aiming to benefit from Hyundai’s existing vendor network.

Also read – Kia Niro hybrid crossover unveiled

It’s too early to speculate about Kia India’s product plan and strategy but Hyundai is most likely to use the new facility to ease pressure off its Irungattukottai facility which is running nearly at its full capacity. The upcoming plant is estimated to have a production capacity of 3,00,000 units when its fully ready.

Kia Telluride Concept – Photos

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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