South Korea’s 2nd largest and world’s 5th largest car manufacturer KIA Motors wants to infuse INR 10,000 Cr., making it to be the largest FDI in India. This move by KIA will give support to Modi ji’s “MAKE IN INDIA” initiative, seems his idea of defining FDI as “First Develop India” is working well.
Penukonda in Anantapur district in southern Andhra Pradesh is the choice of KIA to initiate it’s investment of INR 6000 Cr. in first phase, possibly starting in April with selection of a site for the factory. The state showed due interest by offering about 600 acres (242.81 hectares) of land to the automobile giant. Selecting Andhra Pradesh as home for its factory gives KIA a proximity to Tamil Nadu where resides the plant of KIA’s parent company- Hyundai Motor Co.
KIA cannot afford missing the promising market in India, especially after the worries in sales due to change in trade policies in US (one of their biggest markets) under Donald Trump’s presidency. However, India has given a right set of circumstances to Hyundai for its growth. KIA has got all reasons to leverage Hyundai’s well established complementary assets such as supply chain network well built over nearly two decades. This foundation will provide KIA a foothold in the market that could surmount as the worlds third largest by 2020.
The plant is estimated to start its production by July 2019 with the production of small sedans and sport utility vehicles as per sources, including the statement of the CEO of KIA Motors, Park Han-Woo stating “Preparations are going well. We are ready to break ground on the factory anytime”.
“MAKE IN INDIA’s” crucial objective to generate employment will be given a boost by this automaker. This will be a big bowl of opportunities so we must pull up our socks and be ready with specific skills required.
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