Kia Motors, the sister brand of Korean car maker Hyundai has officially announced its entry into India. Kia is set to build a manufacturing facility in Andhra Pradesh later this year, that will have an annual capacity of 3,00,000 units. Kia has signed the memorandum of understanding with the Andhra state government for setting up of the plant.

Kia will make an investment of $1.1 billion (around Rs 7,050 crore) in the new plant that is spread over 536 acres. Production is slated to begin in the second half of 2019 with sales beginning at the end of the same year.

ae-Hyun (Thomas) Oh, chief operating officer, Kia Motors Corp said that Kia will have 40 percent localisation at the start and aims for complete localisation in the long term, just like Hyundai India. He also said that Kia will be developing a totally different identity from Hyundai, that includes products, dealers and advertising.Kia is currently doing a study to see which models are feasible for India. The company is not only looking at the mass market segment but the premium end of the market as well.  Cars that could make to our shores could be the Kia Sportage SUV as a premium offering. The Sportage rivals the Hyundai Tuscon in the international market. In India the Sportage could share the 2.0 litre diesel motor from the Tuscon. Other cars being considered are the Picanto and the Rio hatchback. Kia could also bring in the recently revealed Stinger to create brand awareness. The Stinger is a sports sedan that is powered by a 3.3 litre twin turbo V6 petrol engine that develops 370 horsepower.

Kia is also looking to have a very strong dealer network pan India just like sister company Hyundai.

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