[THE INVESTOR] Kia Motors, an affiliate of Hyundai Motor, is finalizing its plans to build a new production plant in India, the fifth of its kind outside Korea.
According to news reports on Aug. 11, the new plant, with an annual production capacity of some 300,000 vehicles, is expected to be located in the Indian state of Andhra Pradesh, some 80 kilometers from Hyundai’s two plants in Chennai, the capital city of Tamil Nadu.
“Due to geographical proximity, it would be easy for the two carmakers to share suppliers and parts plants,” a Kia official was quoted as saying by a local news outlet.
Kia has extended its global production network in recent years. The carmaker already has production facilities in the US, China, Slovakia and Mexico.
The carmaker’s overseas plants accounted for 45.8 percent of its total production in the first half of this year. When the new plant starts operations, the figure is expected to exceed 50 percent.
