Kia India signs MoU for $2 billion expansion in AP, to generate 12,000 jobs
Visakhapatnam, Nov 12 (TNT): Kia India will invest approximately $2 billion (around Rs 18,878 crore) to expand its manufacturing facility at Penukonda in Sri Sathya Sai district of Andhra Pradesh, generating around 12,000 jobs and increasing its annual production capacity from 4.3 lakh to 6.3 lakh vehicles.
Kia India Managing Director and CEO Gwanggu Lee announced the expansion at the inaugural session of the 31st CII Partnership Summit here on Thursday.
The company signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government in this regard and exchanged the agreement in the presence of Chief Minister N. Chandrababu Naidu and Minister for HRD, IT, Electronics and Communications and Real Time Governance Nara Lokesh.
Lee said the proposed investment reflected Kia’s confidence in Andhra Pradesh and its long-term commitment to India.
The expansion would strengthen the company’s manufacturing presence in the state, generate employment and further develop the automotive ecosystem.
Recalling Kia’s journey in Andhra Pradesh, he said the company began its operations in the state in 2017 and commissioned its first manufacturing facility in a record 14 months with the cooperation and support of Chief Minister Chandrababu Naidu.
He appreciated the Chief Minister’s commitment and proactive approach towards industrial development and creating an investor-friendly environment.
Lee said Kia India had emerged as one of the country’s leading automobile manufacturers, achieving the production milestones of one million vehicles in four years and two million vehicles within seven years.
The existing Andhra Pradesh facility, with an annual production capacity of 4.3 lakh vehicles, had emerged as a major export hub. The company had exported more than 4.1 lakh vehicles and kits to nearly 100 countries.
Lee reiterated Kia’s commitment to strengthening its partnership with the state government and supporting Andhra Pradesh’s ambition to emerge as a global manufacturing and innovation hub.
TNT KM
