Kia Motors Ready To Storm Indian Auto Market; Will Rival Maruti, Hyundai
Cyrus Dhabhar
1 min read
Apr 27, 2017, 12:00 PM
Key Highlights
- Kia will begin India innings with locally made compact SUV & sedan
- 3 lakh unit annual capacity plant to be ready in 2019
- Kia Motors is Koreas second-largest carmaker & part of the Hyundai Group
Korea’s second largest carmaker Kia Motors has finally announced its plans to enter the Indian car market. Kia will build a brand new manufacturing facility for its India operations in Anantapur, Andhra Pradesh at a cost of a whopping Rs. 7050 Crore ($ 1.1 Billion). Construction of the new factory will begin in the third quarter of 2017 with a production rollout slated for 2019. The plant will have an installed initial annual capacity of 300,000 units. The company has said it will locally manufacture Kia cars for India, and two compact models will lead that for starters.
The company has said it will locally manufacture Kia cars for India
Kia’s compact sedan will rival the likes of the Honda City and the Maruti Suzuki Ciaz, besides cousin Hyundai Verna. The compact SUV (which could be under 4-meters in length) is likely to be an all-new model. Kia Motors will subsequently also produce other models, which includes its global high-volume hatchbacks – the Picanto and Rio. The Rio sedan is likely to be the compact model mentioned earlier. body style vehicles in the facility depending on public response and sales.
Making its India plans official, Kia Motors' President Han-Woo Park, said, “We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh. It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer.”
The statement speaks volumes as it also points to India becoming a future hub for Kia cars worldwide. That will be step two though, as initially Kia will want to focus heavily on gaining a foothold in India. Kia is a subsidiary of the Hyundai-Kia Group, and is one of the world’s largest mass-market automakers. It has been eyeing an India market entry for a few years now. In fact, last year we brought you some exclusive news about Kia’s India plans and how it planned to go about its entry. We also brought you some information about its likely product line-up, pricing and model positioning strategy. With Kia Motors’ entry into India, the Hyundai Group as a whole will naturally eye a larger share of this market.
Kia Motors’ new factory will be spread over 536 acres (2.16 sq. kms) and will have a manufacturing operation that incorporates stamping, welding, painting and final assembly facilities. The Kia factory site will also have several suppliers setting up shop in the vicinity of the plant, though several of Hyundai’s suppliers may also supply to the plant. This is because Hyundai’s Chennai manufacturing and vendor base are under 500 kms from the Anantapur site, and Hyundai/Kia share vehicle platforms and components. Kia Motors currently produces 3 million cars worldwide, and the Indian factory will be its 15th manufacturing facility globally.
Kia’s compact sedan will rival the likes of the Honda City and the Maruti Suzuki Ciaz, besides cousin Hyundai Verna. The compact SUV (which could be under 4-meters in length) is likely to be an all-new model. Kia Motors will subsequently also produce other models, which includes its global high-volume hatchbacks – the Picanto and Rio. The Rio sedan is likely to be the compact model mentioned earlier. body style vehicles in the facility depending on public response and sales.
Kia Rio could be considered for Indian markets
Kia Sportage compact SUV could be made in India
Kia Rio Sedan will be made at Indian factory
Related News
Latest Cars
Upcoming Cars
Latest News
Jaiveer Mehra | Jan 29, 2026Tesla Model S, Model X Production To End By Mid-2026Company CEO Elon Musk made the announcement during the company’s Q4 2025 earnings call.3 mins read
car&bike Team | Jan 29, 2026Mahindra Vision S SUV Interior Spied For The First TimeTest mules of the boxy SUV were initially spotted on public roads in mid 2025, with the concept debuting in August.1 min read
car&bike Team | Jan 29, 2026Hyundai Exter Facelift Spied Testing Ahead Of India DebutUpdated Exter is expected to make its debut later in the year as Hyundai will look to better compete with the Punch.1 min read
Janak Sorap | Jan 29, 20262023 World Superbike Championship-winning Ducati Panigale V4 R: Photo GalleryThis one is not tribute bike or a factory replica, but the very machine ridden by Álvaro Bautista during his record-breaking WorldSBK title in the 2023 season.1 min read
car&bike Team | Jan 29, 2026Skoda Kylaq Crosses 50,000 Units Production MilestoneThe sub-compact SUV has played a major role in Skoda’s 107 per cent sales growth in 2025.2 mins read
Janak Sorap | Jan 29, 2026KTM 390 Adventure R Launched in India at Rs. 3.78 LakhKTM has quietly expanded its adventure lineup in India with the launch of the more off-road-focused 390 Adventure R.1 min read
Bilal Firfiray | Jan 21, 2026Tata Punch Facelift Review: New Turbo Engine; Same Old SoulWith the update, the Tata Punch facelift retains its character of being a healthy runabout, which is perfect for Indian roads. But have these changes made it any better?7 mins read
Amaan Ahmed | Jan 17, 2026Bajaj Chetak C25 First Ride Review: Basic, Likeable E-Scooter For First-Time RidersThe Chetak C25, in quite a few ways, is poles apart from the larger and more powerful 30 and 35 Series models, but in its mannerisms, it is very much a Chetak.8 mins read
Bilal Firfiray | Jan 9, 2026Toyota Urban Cruiser Hyryder: 10,000 km Long-Term ReviewAfter spending over three months and 10,000 km with the Toyota Urban Cruiser Hyryder Hybrid, we were impressed by its real-world mileage, seamless hybrid, practical comfort, and Toyota reliability. Is it the best C-SUV then?5 mins read
Seshan Vijayraghvan | Jan 8, 20262026 Mahindra XUV 7XO Review: Big On Tech, Bigger On ComfortThe new Mahindra XUV 7XO is flashier, feature packed, and comes with more advanced tech. But are the changes just incremental or actually substantial?1 min read
Preetam Bora | Jan 10, 2026Simple One Gen 2 First Ride Review: 265 km Claimed Range!The Gen 2 model of Simple Energy’s first electric scooter gets a fair few updates, including new features, tech, more range and lighter weight. We spent a couple of hours with the Simple One Gen 2 to find out if it manages to impress.6 mins read