Kia Motors Considers Andhra Pradesh For Its First Indian Base

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Kia Motors, Korea’s leading automotive giants has decided to set up its first Indian base in Andhra Pradesh. One of the big names in the auto industry has never had its operations in India before. Now, AP seems to be an undeniable and instant choice for the automotive player. Kia had it in the agenda for quite sometime to go overseas with expansion plans this year, and that included India.

The competition was nothing short of tough. States like Tamil Nadu and Gujarat, which flaunt great manufacturing bases have tried their best to woo Kia prior to the decision. However, Andhra Pradesh State Government had managed to outdo the rest by pitching the best yet – great locations on the AP and Tamil Nadu border that cannot be overlooked. The location that Kia has zeroed on will be 80 to 90 kilometers away from the existing Hyundai Plant, going by the sources.

Kia Motors will be investing close to Rs 5,000 Cr, with Rs 3,000 Cr for phase one and setting up a manufacturing capacity of 3 lakh units. Sources indicate that the position works greatly in favor of the company, majorly because of the upcoming Chennai Vizag Industrial Corridor and accessibility to Krishnapatnam port.

AP government had pitched several promising nodes to Kia, and that include Nellore, Chittoor and Anantapur. But the Korean giant was particularly in favor of a location that is both closer to the Tamil Nadu border and Krishnapatnam Port. The company wanted proximity with TN for its Hyundai supplier base. Interestingly, AP government has also offered the company a prime location in Sri City, close to where the Japanese giant Isuzu is deploying its operations.

It cannot be denied that AP’s number one position in the Ease of Doing Business has worked heavily in favor of investors considering the state for setting up the base.

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