Kia to invest Rs 400 crore to expand India operations

    The extra investment into Kia’s Anantapur plant in Andhra Pradesh is expected to be used to increase production capacity once demand for the Sonet compact SUV begins.

    Published On May 28, 2020 07:13:00 PM

    18,350 Views

    Kia to invest Rs 400 crore to expand India operations

    Kia Motors India has announced today that it will be making an additional investment of $54 million (Rs 400 crore) in Andhra Pradesh, where it has its manufacturing plant at Anantapur.

    The announcement was made by Kookhyun Shim, CEO and MD, Kia Motors India at the Andhra Pradesh ‘Mana Palana-Mee Suchana’ program. He said, “We are happy to share that we will make an additional investment of $54 million for our upcoming project despite the Covid-19 pandemic.”

    Kia, which is on a roll thanks to stellar sales of the Seltos SUV and the encouraging response to the upmarket Carnival MPV, has an aggressive new product strategy in place. By August-September 2020, it plans to launch the Sonet compact SUV. This rival to the Hyundai Venue, Tata Nexon, Ford EcoSport, Mahindra XUV300  and Maruti Suzuki Vitara Brezza, will be available with a wide variety of powertrains, segment-leading kit and with an estimated ex-showroom price tag of Rs 7-12 lakh.

    The Korean carmaker has already invested around $1.1 billion (Rs 8,141 crore) in its Anantapur plant, which has an existing production capacity of 3 lakh units per annum. The additional investment is expected to help the company ramp up production by around 1-1.5 lakh units, as it expects to increase sales and exports.

    Also see:

    Kia Rio facelift revealed

    Kia Seltos variants set to get feature upgrades

    Kia Motors India introduces ‘Kia Care’ initiative

    Kia Cars

    Copyright (c) Autocar Professional. All rights reserved.

    Comments

    ×
    img

    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Car Price

    Poll of the month

    The Mahindra XUV 300 facelift will be called the XUV 3XO. Should more brands rename models for facelifts?

    Yes, it could give new life to a slow-selling car

     

    13.87%

    Yes, but only if there are significant changes

     

    31.54%

    No, it's confusing and dilutes the brand name

     

    30.28%

    No difference, the product speaks for itself

     

    24.31%

    Total Votes : 1341
    Sign up for our newsletter

    Get all the latest updates from the automobile universe