NEW DELHI: Kia Motors is expanding its India operations and will increase local production capacity by as much as 40% by starting a third shift at its factory. The company plans to drive in new models, including a utility vehicle and possibly a hatchback, to capture a higher share of the market.
The company, which has sold over 3 lakh units since beginning operations in August 2019 in one of the fastest rampup for any debutant car company, plans to boost production at its Anantapur factory in Andhra Pradesh from 18,000 on a monthly basis to nearly 25,000 units, Tae-Jin Park, chief sales & business strategy officer of Kia India, said.
“India is a strong bet for Kia globally and we will continue to invest for growth in the future, especially in enhancing our manufacturing capabilities. We have plans for kick-starting a third shift at our facility,” Park told TOI, outlining an aggressive expansion strategy.
The company — a group entity of Korean Hyundai — has already invested $1.1 billion in India operations, which aggregates to $2 billion if the money invested by its component suppliers and other partners is taken into consideration.
Asked whether the company will set up a new factory or a manufacturing setup as it moves towards the initial 3-lakh capacity target, he said fresh investments will not be a constraint and any further expansion will happen at the existing location.
