90% of production will cater to domestic market

Chief Minister N. Chandrababu Naidu will launch the trial run of Kia Motors’ first car along with its managing director Kookhyun Sim in Anantapur district on January 29 in the presence of South Korea Ambassador to India, Shin Bongkil.

The Kia Motors’ plant was set up with an investment of over ₹12,900 crore with an initial installed capacity of three lakh vehicles per annum, which is targeted to be ramped up to four lakh in the due course, according to an official release.

Ninety per cent of the production will cater to the domestic market and the balance is earmarked for exports. Kia Motors is also collaborating with the State government for the development of an electric vehicle ecosystem.

It may be noted that Andhra Pradesh is one of the few States which brought out a Backward Areas Ultra Mega Integrated Automobile Projects Policy and it has been the leader in promoting the manufacturing and adoption of electric vehicles. The State attracted committed investments of ₹40,724 crore in the last four-and-half years.

With the presence of Kia motors and its ancillaries, the entire Rayalaseema region from Anantapur towards Bengaluru will emerge as an economic hub. The project will have a spin-off effect on the development of the State.