BREAKING NEWS

Sunrise for auto sector in AP: First made-in-India KIA car out for trials

South Korean automobile giant KIA Motors has rolled out its first made-in-India car today at its manufacturing plant in Anantapur. Chief Minister N. Chandrababu Naidu launched the trial run along with KIA Motors Managing Director K. Shim, in presence of South Korean Ambassador to India, Shin Bongkil. 
 
According to the state government and KIA Motors, the automobile giant has set a record by commencing trials in a record time of one year. After a Memorandum of Understanding (MoU) with AP Government to build a new manufacturing facility in April 2017, KIA Motors had begun the construction of its plant in 213 hectares at Penukonda in Anantapur district in January 2018.
 
The total investment made on Kia’s greenfield car manufacturing plant is over Rs.12,900 crore. Kia Motors happens to be one of India’s largest Foreign Direct Investments (FDI) in India in the recent times. The plant has an initial installed capacity of 3 lakh vehicles per annum, which will further be expanded to 4 lakh vehicles. The production volume will comprise of 90 percent domestic sales and 10 percent exports. 
 
In due course, KIA Motors will provide jobs to 4,000 permanent employees and 7,000 temporary employees. KIA Motors has also collaborated with Government of Andhra Pradesh for developing an ecosystem for manufacturing electric vehicles. 

“With the trial run of the first car today, KIA Motors sets a benchmark by commencing trial production in a record time. The Korean automobile giant will also collaborate with AP government for developing an ecosystem for electric vehicles,” said Chandrababu Naidu, in a tweet.
 
The state is one of the first few states to proactively bring out a very dedicated automobile and auto components policy in 2015 through backward areas ultra-mega integrated automobile projects policy. Andhra Pradesh is also one of the first states to introduce a dedicated policy for promoting manufacturing and adoption of electric vehicles (EVs) aimed at creating a sustainable future. 
 
The state currently has over 100 auto component manufacturers. It has attracted committed investments of Rs. 40,724 crore over the past 4.5 years in the automobile sector.With the presence of Kia Motors and its ancillaries, the entire region from Anantapur to Bengaluru, has the potential to emerge as a massive economic hub in the years ahead.

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