The South Korean automaker has announced it will build an assembly factory worth $1.1-Billion in India, with production starting in 2019 and a yearly capacity of 300,000 units.
The country is today the world’s fifth biggest car market, so Kia is investing heavily to produce cars specifically for the local market. Construction work on the new plant is said to kick off in the fourth quarter of the year as part of a huge investment vetted to be around $1.1 billion. Everything should be finished by the second half of 2019 and when fully operational the assembly facility should churn out about 300,000 units each year. It has been located in southeast India and should span no less than 23 million square feet (2.16 km2 / 536 acres), the new factory in Andhra Pradesh also gets the stamping, welding, and painting facilities.
According to the carmaker, the strategy includes initial production plans for a compact sedan and a derived crossover designed and engineered for the local market, with more models to follow after the turn of the decade. By the way, the South Korean group is mulling a large presence in India – Hyundai is the second largest auto producer in India, with two production locations in Chennai with a combined capacity of 700,000 units per year.