In a welcome sign for Andhra Pradesh, South Korean car manufacturer Kia Motors has decided to invest $54 million in the state with focus on their SUV cars. The announcement was made by Kia Motors India Chief Executive Officer & Managing Director Kookhyun Shim at the “Mana Palana-Mee Suchana “ program.
The Kia Motors manufacturing plant in Anantapur, Andhra Pradesh is one of the largest car factories in India. With its latest investment, Kia Motors plans to expand the existing plant in the state to manufacture Sports Utility Vehicles (SUVs), said the CEO. In his address, CEO Kookhyun Shim said that almost 85% of the jobs at the manufacturing unit are catered to Andhra Pradesh locals, thereby supporting the Chief Minister’s vision of generating employment through investments. The top officer also said that Kia Motors aims to be a model for future investments in the state.
CM YS Jagan Mohan Reddy stated that the Andhra Pradesh government aims to support all new investors with skilled workforce, energy, land and water. Further, he added that Andhra Pradesh is a good investment for all companies seeking to expand their business, owing to the stable government, four ports and five airports. Seconding his thoughts, Kia Motors India CEO Shim stated that Andhra Pradesh has a strong advantage to progress as an industrial hub due to the availability of human resource and responsible authorities.
Kia Motors signed a Memorandum of Understanding (MOU) with the Andhra Pradesh government in April 2017. Their first plant was built on a 536-acre site in Penukonda, Anantapur District in Andhra Pradesh. The MoU stated that the plant would produce 3 lakh cars every year with an investment of $1.1 billion. The plant was built with an investment of Rs 12,900 crores, which made the unit one of the largest FDI grounded in India.