Kia Auto mobiles, a sister organisation of South Korean automaker Hyundai, is reportedly eyeing an India entry. The company plans to set up a plant in Chennai, near Hyundai Motor India's plant. The facility is expected to be ready by 2012 and will have an installed capacity of 3 lakh units.Kia’s best-selling global model include the C-segment Cerato/Forte, B-segment Rio and Sportage compact sports utility vehicle, Sorento mid-size compact utility vehicle and Soul, the urban crossover. For the first five months of 2010, Kia sold 820,613 units globally, an increase of 38.9% year-on-year. Sales in China rose 92.9% for the period.
Kia Auto mobile conducting a feasibility study to select a site for the plant near Chennai.”
“Based on data from Hyundai Motor which entered the Indian market in 1998, we are estimating costs and time to build the plant, as well as examining demand forecasts and Hyundai's sales figures there,” he was quoted in the report.
Hyundai sister organisation and its decisions are its own. If they want to enter they are most welcome. I have nothing more to add.Hyundai operates two plants in Chennai with a combined annual output of 6 lakh units a year. The company is in the process of shifting the production of Hyundai i20 out of Chennai to its Turkey plant. This will free capacity for 50,000-odd units. The plant in Turkey has a capacity of 1 lakh units per annum. The company says tax benefits in Turkey prompted it to shift the production. Park added that with little investment, the capacity at Chennai cab rise to 6.7 lakh units a year.
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