Kia Motors dazzled the press screening of the Auto Expo 2018 by showcasing the SP Concept. | Photo Credit: Indiatimes

New Delhi: South Korean automobile giant Kia Motors, which showcased 16 models from its global portfolio in recently concluded Auto Expo 2018, has decided to manufacture them with nearly full localisation in Andhra Pradesh after the state government offered an upwardly revised incentives package, a report in the Economic Times said.

“The South Korean automobile giant Kia Motors has now agreed to manufacture nearly 100 per cent of its cars in Andhra Pradesh as against its earlier plan to import certain key components and assemble them in India, keeping in view the increased import duty,” the ET report quoted Cherukuri Kutumba Rao, vice-chairman of Andhra Pradesh State Planning Board as saying.

The development comes weeks after Kia Motors India CEO Kook Hyun Shim, at the Auto Expo 2018, hinted at plans to go in for a high level of localisation that would help the automaker reach volumes and market share targets early. He had also said that shipping parts from Korea will not be feasible and increased localisation could help gain a foothold in India quickly, the ET report said.

Kia Motors, Korea’s second-largest automaker is setting up its car manufacturing facility in Anantapur district of Andhra Pradesh with an installed capacity of 3 lakh cars a year, aimed at garnering around a tenth of its global sales once it reaches full capacity, the ET report said.

Auto Expo 2018: Kia Motors dazzles with SP Concept, to launch 16 EVs by 2025 in India

Further, Kia Motors is also considering to advance the launch of sales operations in India by a couple of months from the initially planned schedule, which was around Diwali in 2019. It is looking at launching at least 3-4 products by 2021 to take its annual sales to 300,000 units, the ET report further added.

One of the reasons for advancing the launch is the encouraging response that the company got during the recent Auto Expo in Greater Noida. Kia is also ahead of schedule with the building of its local manufacturing factory in Andhra Pradesh, the report added.

Last week, Kia Motors dazzled the press screening of the Auto Expo 2018 by showcasing the SP Concept - a compact SUV. Designed specifically for India, the whole unit looks classy and looks much more aggressive than most other compact offerings in the market and is likely to take on the Hyundai's Creta. It also has a catchy LED bar on top of the roof.

The company has plans to launch 16 electric vehicles in India by the end of 2025.