The allure of India’s flourishing automobile marketplace is apropos too clever to resist.
South Korean automaker Kia Motors on Thursday became a latest association to try and squeeze a cut of a pie, announcing a $1.1 billion investment in a production plant in a Indian state of Andhra Pradesh.
Construction is due to start after this year, and a plant is approaching to turn operational in 2019. Kia says it will furnish 300,000 vehicles a year.
“It will capacitate us to sell cars in a world’s fifth largest market,” Kia Motors boss Han-Woo Park pronounced in a statement.
Kia, that operates in over 160 countries and territories worldwide, pronounced it skeleton to rise a new compress sedan and SUV privately for a Indian market.
More than 3 million newcomer vehicles were sole in India in a financial year finished Mar 31, scarcely 10% some-more than a prior year, according to a Society of Indian Automobile Manufacturers.
India’s intensity as an automotive powerhouse has captivated a prolonged line of unfamiliar carmakers in new months. Industry experts envision a South Asian republic will be a world’s third largest automobile marketplace by 2020.
Volkswagen — a world’s biggest automaker — announced a “strategic alliance” with India’s Tata Motors final month, while Japanese rivals Toyota and Suzuki devise to organisation adult to rise new technologies in a country.
French brands Peugeot and Citroen are returning to India after a two-decade hiatus. Their primogenitor association PSA announced a $107 million investment in January. Also entering a fray: electric automobile hulk Tesla.
Meanwhile, Shanghai-based SAIC Motor is aiming to turn a initial Chinese manufacturer to sell cars in India.
Kia is partial of a Hyundai group, that is already India’s second biggest automobile builder with 20% of a market.