South Korean car manufacturer Kia Motors Corp has been offered 600 acres of land by Andhra Pradesh government in the district of Anantapur for its first factory in the country. The manufacturer is speeding up its efforts to get a breakthrough in one of the largest car market in the world.
According to a report by Reuters, the automaker is likely to soon finalise the site. Earlier, it was said that Gujarat and Maharashtra were also interested in offering land to the Korean manufacturer for the factory.
Kia is an affiliate of Hyundai Motor, which is the second-largest automaker by sales in India and each year, the manufacturer is witnessing sales growth. Together, Hyundai and Kia are the fifth largest automaker in the world.
The Korean manufacturer aims to commence manufacturing at the plant from July 2019. Kia will also be able to leverage Hyundai's supply chain network in the country. The company will manufacture compact sedans and compact SUVs from its Indian factory.
Park Han-woo, Kia Motors CEO told Reuters that the company was in the process of picking a site in India, but he didn't reveal any details on location. He said, "Preparations are going well. We are ready to break ground on the factory anytime."
When Kia Motors enters the Indian market, it has to fight off the challenges from leading manufacturers such as Tata Motors, Honda, Toyota and others to gain some momentum in the subcontinent. Meanwhile, Hyundai will try to dethrone Maruti Suzuki from the top spot.