South Korea’s second-largest carmaker Kia, is in the final stage of talks to build its first plant in India a company official said Wednesday.
“We have searched for the right site for the Indian plant for the past two years. The talks (with a regional authority in India) are in the final stages,” a Hyundai Motor Group official told Yonhap News.
The Indian plant will have a capacity of 300,000 units a year.
“We have not decided yet on the size of the investment,” the official said. “The Indian plant is to absorb rapidly growing vehicle demand in the world’s second-most populous country.”
India’s Economic Times recently reported that Kia has selected Penukonda for its first plant in India and the investment will be roughly $1.6 billion to construct two plants there.
“We are planning to build one plant in India, not two. That’s because it’s possible to increase production by 50,000 units or 60,000 units a year (at a giant plant) depending on local demand,” he said.