South Korean automobile giant Kia Motors will roll out its first India-made car in Andhra Pradesh on Tuesday. Andhra Pradesh Chief Minister Chandrababu Naidu, along with KIA Motors MD Kookhyun Shim, will launch the trial run of the car in the presence of South Korea Ambassador to India Shin Bongkil.
Kia Motors began constructing its manufacturing plant in Anantapur district in January last year after it had signed an MoU with the government of Andhra Pradesh in 2017. The plant was set up with an investment of Rs 12900 crores, making it one of the largest FDI grounded in India in recent times.
As per an official release, the plant will have an initial installed capacity of three lakh vehicles per year, which might be increased to four lakh eventually. Reportedly, 90 per cent of the production will be for domestic sales while the remaining 10 per cent will be allocated for exports. Kia Motors is also expected to generate direct employment to 4000 people and indirect employment to 7000 people.
Also, it may be noted that the car-making company holds plans with the Andhra Pradesh government to promote the manufacturing and adoption of electric vehicles in the state.
Currently, Andhra Pradesh is one of the first states in the country to bring out a dedicated automobile and auto components policy in 2015 through backward areas ultra mega integrated automobile projects policy. Reportedly, the state attracted committed investments of ₹40,724 crore in the last four-and-half years.