Kia to move out of Andhra Pradesh? State Government rubbishes reports

The Andhra Pradesh State Government has responded to reports claiming that top car manufacturer Kia Motors will be shifting its plant from the State. Earlier, reports of Kia Motors conducting meetings with the Tamil Nadu government had surfaced. As per a report by Reuters, an official informed that the manufacturer has been facing issues with the State Government’s policy changes, and might move out of Andhra Pradesh. However, officials from the state have rubbished the possibility of Kia Motors moving its USD 1.1 billion-plant to the neighbouring Tamil Nadu.

As per sources, Rajath Bhargava, Special Chief Secretary for Industries and Investments and Commerce, said that Kia Motors and the Government of Andhra Pradesh continue to work together. He added that the State Government strongly condemns the reports.

Kia Motors too said that no such decisions have been taken by the company. Reportedly, Kia Motors stated that it plans to serve the Indian market while fully utilising the Andhra Pradesh plant.

Andhra Pradesh Chief Minister YS Jagan inaugurated that Kia Motors plant in Andhra Pradesh in December last year. The plant has an annual manufacturing capacity of around 3,00,000 units and has created 12,000 direct and indirect jobs since inception. The South Korean company had said that the 23 million square foot facility would be used to manufacture vehicles for both the Indian and overseas markets. It said that the facility would become a vital part of its global production network in the long run.