Kia Motors India Refutes Reports Of Shifting Manufacturing Plant From Andhra Pradesh

India Business

The international car maker issued a statement on Friday claiming that it has long term commitments for developing its plant in the region

Written By Devarshi mankad | Mumbai | Updated On:
Kia motors

Amid reports of change in manufacturing facility outside of Andhra Pradesh, Kia Motors India, a multinational automotive manufacturer has refuted the claims.The international car maker issued a statement on Friday claiming that it has long term commitments for developing its plant in the region. 

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KIA denies reports

The statement read, "The recent reports about the relocation of our manufacturing facility outside of Andhra Pradesh are not true. We are receiving full support from the State government of Andhra Pradesh under the dynamic leadership of Shri Jagan Mohan Reddy. Kia has a long term commitment to the Indian market and has made an investment of USD 1.1 billion in the manufacturing plant at Anantpur. We will continue to offer world class, made-in-Anantpur vehicles and innvoate mobility expereince to our valuable customers in India. Request consumers in India. Request consumers to refrain from reports which do not cover these facts."

The statement was issued after multiple reports in the last few days surfaced that Kia motors was going to move its plant out of Andhra Pradesh and move to Tamil Nadu. The plant was inaugurated in December after two years of construction. 

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The Anantapur manufacturing facility occupies 536 acres and is capable of an annual production capacity of up to 300,000 units and is expected to create a total of 3,000 direct and 7,000 indirect jobs across the state. Rajath Bhargava, Special Chief Secretary of Industries, Investments & Commerce, of the state government had denied the news on Thursday and said, "News report of Kia Motors shifting from Andhra Pradesh is not true. KIA and the state government are working together. We strongly condemn the news."

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Earlier, Kookhyun Shim – Managing Director and CEO of Kia Motors India had said, "Here in Anantapur, we have created one of the most technically-advanced, cost-effective and labor-efficient manufacturing facilities in the world. Today, we officially begin our journey to becoming one of the top five automakers in India by 2021, with a new model that will appeal to forward-looking and outgoing Indian buyers."

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