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
Trending News
1 min readTriumph Tracker 400: In Pictures
Latest News
car&bike Team | Dec 18, 2025KTM 160 Duke With TFT Dash launched At Rs 1.79 LakhThe 5-inch colour TFT dash is borrowed from the 390 Duke and is shared across the brand’s sub-400cc lineup.2 mins read
car&bike Team | Dec 18, 2025Lamborghini Urus Seized By Cops Following Viral Clip Of Speeding On Bandra-Worli Sea LinkThe car was seized after a video of it allegedly overspeeding on the Bandra–Worli Sea Link, where the speed limit is capped at 80 kmph, went viral.2 mins read
car&bike Team | Dec 18, 20252025 Ducati XDiavel V4 India Launch Details RevealedThe new Ducati XDiavel V4 will be launched towards the end of December 2025 and will sit alongside the standard Ducati Diavel V4.3 mins read
Amaan Ahmed | Dec 18, 2025Maruti WagonR Swivel Front Seat Kit Launched: Check Price, AvailabilityBangalore-based startup TrueAssist Technology Private Limited has developed a mechanism that allows the front passenger seat to swivel outwards, in a bid to improve accessibility for the aged and persons with disabilities.2 mins read
Amaan Ahmed | Dec 18, 2025Nissan Gravite MPV (Renault Triber Derivative) To Be Launched Early In 2026Nearly seven years on from the launch of the MPV it shares its underpinnings with arrives Nissan's entry-level 7-seat model; to debut in January.2 mins read
Jafar Rizvi | Dec 18, 2025Tata Sierra Pure, Pure+ Variants Explained In PicturesThe Pure trim of the Sierra is priced from Rs 12.49 lakh to Rs 17.49 lakh (ex-showroom), depending on the powertrain option. Here is a breakdown of what it gets.3 mins read
Bilal Firfiray | Dec 18, 2025Mercedes-Benz G450d: The Subtle Power of EvolutionThe Mercedes-Benz G 450d evolves subtly with more power, improved efficiency, and modern tech, while staying true to the timeless G-Class design. And character.4 mins read
Janak Sorap | Dec 11, 2025Harley-Davidson X440 T First Ride Review: Smarter and SharperHarley-Davidson has taken the X440 and given it a more focused and engaging twist. The result is the X440 T—essentially the same platform but updated in areas that give the motorcycle more appeal and riders more thrill.5 mins read
Shams Raza Naqvi | Dec 10, 20252025 Mini Cooper Convertible Review: More Colour On Indian RoadsThe updated Mini Cooper Convertible is set to be launched in the Indian market in the next few days. We drive it around Jaisalmer for a quick review.1 min read
Bilal Firfiray | Dec 8, 2025Tata Sierra Review: India’s New Favourite?Marking its return after a few decades, the reborn Sierra has made everyone sit up and take notice. But is it worth the hype?10 mins read
Girish Karkera | Dec 4, 20252026 Honda Prelude First Drive: Domesticated Civic Type RA sporty-looking coupe built to give customers a taste of performance but not at the expense of everyday practicality.5 mins read