It will enable Kia to sell cars in the world's fifth- largest market while providing greater flexibility for the company's global business, he added.
The automaker together with affiliate Kia Motors reported on Wednesday a first-quarter net profit of $1.18 billion (1.33 trillion won), its 13th straight year-on-year quarterly fall.
Hyundai Motor Co.is counting on a new small SUV and its luxury brand to help it rebound from a third consecutive drop in quarterly profit and overcome predictions for slower growth and intensifying competition. So, this collaboration with Kia Motors is a new gem for the economy of Andhra Pradesh. Strong demand for its new Grandeur sedan and Genesis G80 at home also contributed to earnings.
Kia's new factory in the state of Andhra Pradesh in India's southeast will be completed by late 2019 and produce up to 300,000 vehicles per year, the company said Thursday in a statement.
The Kia Sportage is a popular crossover model in the global market.
This brings us to the sixty-four dollar question, what cars would Kia bring to India? Maruti Suzuki India Ltd., the Indian arm of Suzuki Motor Corp. dominates the market, which now contributes nearly half of Suzuki's global sales.
The allure of India's growing vehicle market is becoming too strong to resist.
Kia plans to commence local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur. "Furthermore, the region's fast-developing supply chain network and skilled labour force were other key reasons for the new investment by Kia Motors", it said. Industry experts predict the South Asian nation will be the world's third largest vehicle market by 2020. Kia will also set up a township for its employees, apart from an advanced training centre.
Andhra Pradesh Government has entered into an MOU with South Korea-based Kia Motors which is World's Fifth Largest Automobile Company to establish its first-ever plant in India.
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