Canadian Manufacturing

Kia building US$1.1B factory in India

The new factory is expected to increase the portion of Kia's overseas production to nearly 60 per cent from 55 per cent



A Kia production line in South Korea. PHOTO Hyundai Motor America

SEOUL, Korea, Republic Of—Kia Motors Co. says it will invest $1.1 billion in India to build its first plant in the world’s fifth-largest auto market.

Kia said that its 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 maker of Optima sedan is considering making small cars and SUVs for the Indian market.

Kia, South Korea’s second-largest automaker, is part of Hyundai Motor Group, the fifth-largest auto company in the world. Kia’s bigger affiliate Hyundai makes 650,000 vehicles in India a year. Without its own production line, Kia could not enter the market due to steep tariffs on imported cars.

The new factory will increase the portion of Kia’s overseas production to nearly 60 per cent from 55 per cent.

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