In an official statement, Kia Motors has said that it has signed a memorandum of understanding (MOU) with the State Government of Andhra Pradesh, India to build a new manufacturing facility in Anantapur District. Construction of the new manufacturing facility, Kia Motors——— first in India and representing approximately a US$1.1 billion investment, will commence in the final quarter of 2017. The manufacturing facility is expected to begin production in the second half of 2019 and produce up to approximately 300,000 units each year.
The cars produced there would be a compact SUV and sedan for the Indian market. The facility is around 23 million square feet (2.16 km2 / 536 acres) and incorporate facilities for stamping, welding, painting and assembly. The site will also be home to numerous supplier companies——— facilities. Local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur. It is not clear what models the car-maker will launch apart from the compact sedan and SUV but expect other models too like the Rio and the Soul.