Kia Motors set to start trial production at Anantapur unit.

Korean automobile giant Kia Motors is all set to commence trial production at Anantapur in Andhra Pradesh. The company will launch the trial run of first car on January 29 in the presence of South Korea Ambassador to India, Shin Bongkil.

The Kia greenfield car manufacturing plant will have an investment of over Rs. 12,900 crore. Kia Motors, along with auto ancillaries from South Korea, is one of the largest foreign direct investments (FDIs) that has been grounded in India in recent times. The plant will have initial installed capacity of three lakh vehicles per annum and may be further increased to four lakh vehicles.

The production volume will comprise 90% domestic sales and 10% exports. The Korean company will generate employment for 4,000 permanent employees and 7,000 temporary employees.

Besides, Kia Motors will also be collaborating with the Andhra Pradesh (AP) government for developing an ecosystem for electric vehicles.

AP is one of the first few states to proactively bring out a very dedicated automobile and auto components policy in 2015 through backward areas ultra mega integrated automobile projects policy. AP is one among the first to bring a dedicated policy for promoting manufacturing and adoption of electric vehicles. The state has presence of more than 100 auto component manufacturers.

The state has attracted committed investments of Rs. 40,724 crore over the past four and half years in automobiles sector.

THE FINANCIAL EXPRESS