“We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh,” said Han-Woo Park, President of Kia Motors. “It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer,” he said.
Kia Motors sales to commence end of 2019
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.
India is the fastest growing major new car market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016. Forecasts suggest the country will become the third-largest car market by the end of 2020.
Kia Motors domestic production network
Kia’s domestic production network in South Korea is spread out in Sohari (Plant Capacity 320,000 units) where models like the Rio, Grand Carnival (Sedona) and Quoris (K900) are made. At the Hwasung plant (capacity 540,000 units), models like the Cerato (Forte), Optima, Niro, Sorento, Borrego (Mohave) and Cadenza are made. At the Gwangju plant (capacity 490,000 units) models like the Soul, Sportage, Carens (Rondo), K-series Trucks and Buses & Military Vehicles are manufactured. At the Seosan plant (capacity 250,000), the Picanto and Ray are made. The total domestic capacity is 1,600,000. Most of the plants are a 50:50 joint venture with Donghee Automotive
Kia Motors overseas production capacity
Kia Motors has an additional overseas production capacity of 1,960,000, putting the total global production of Kia at 3,560,000. Kia’s overseas plants include one in US (Georgia) 340,000 units, Mexico 400,000 units, Slovakia 330,000 units, China two plants of 140,000 units and 300,000 units (total 440,000 units). In 2016, Kia Motors sold more than 3.12 million cars worldwide.