The Kia greenfield car manufacturing plant will have an investment of over Rs. 12,900 Cr. Kia motors along with the Auto Ancillaries from South Korea is one of the largest FDI that has been grounded in India in recent times. The plant will have an initial installed capacity of 3 Lac vehicles per annum and will further expand to 4 Lac vehicles. The production volume will comprise of 90% domestic sales and 10% exports. The plant will generate employment for 4,000 permanent and 7,000 temporary employees.
AP was one of the first few States to proactively bring out a very dedicated automobile and auto components policy in 2015 through the backward areas ultra mega integrated automobile projects policy. AP is also one among the first to bring a dedicated policy for promoting manufacturing and adoption of electric vehicles. With the presence of more than 100 auto component manufacturers, the State has attracted committed investments of Rs. 40,724 Cr over the past 4.5 years in the automobiles sector.
With the presence of Kia Motors and its ancillaries, the entire region from Anantapur towards Bengaluru will be developed as a strong economic hub. The project will have a spin-off effect on the development of AP, especially Anantapur, as an automobile hub.