Hyundai to jointly manufacture cars from Kia Motor

[3mar]

Hyundai to jointly manufacture cars from Kia Motors new Andhra Pradesh unit

IndiaToday.in   |   New Delhi, March 8, 2017 | Written by Pratik Rakshit | UPDATED 12:59 IST

 

http://indiatoday.intoday.in/auto/story/hyundai-to-jointly-manufacture-cars-from-kia-motors-new-andhra-pradesh-unit/1/899418.html

 

According to a report in BTVi, Hyundai India will join hands with its sibling, Kia Motors in  India to manufacture cars from latter's new plant in Ananthapur, Andhra Pradesh. With an eye on producing more cars for the Indian market, Hyundai and Kia Motors will jointly manufactures cars from the AP unit. Kia Motors is said to be the contract manufacturer for Hyundai in India. Hyundai and Kia Motors together are the 5th largest car manufactures in the world.

 

Kia Motors is investing close to Rs 12,000 crore in the AP unit and will utilise 50 per cent from each of the plants 3 lakh units capacity. Hyundai will utilise the rest of the 50 per cent to locally produce their cars. We had earlier reported that Kia Motors is set to enter India this year and will be placed lower than the Hyundai products. With Kia Motors, Hyundai will look to produce low-cost cars for the masses. Hyundai already has a plant in Tamil Nadu.

 

Although Hyundai and Kia Motor will be sharing the same platform for their future products, but the overall design of the final product will be different that will cater to all the sections in the country.The move would enable Kia to leverage the existing supplier base of its affiliate Hyundai Motor Co, India's second-biggest automaker by sales. 

 

The factory would start production in 2019 and eventually have capacity to make 300,000 Kia vehicles a year. Kia Motors sold close to 3.05 million vehicles globally last year. Kia is best known as a maker of relatively inexpensive cars, like the Rio sub-compact. When launched, the first product from Kia Motors is said to be recently unveiled Picanto hatchback.

 

In August 2016, the Tamil Nadu government had offered about 400 acres of land for KIA Motors to set up their manufacturing unit in the state. Kia Motors will take on its parent company Hyundai along with Tata Motors, Honda and Maruti Suzuki in India.

 

[3mar]

India-bound Kia Picanto unveiled at Geneva Motor Show

 

http://indiatoday.intoday.in/auto/story/india-bound-kia-picanto-unveiled-at-geneva-motor-show/1/898652.html

[3mar]

Andhra gains ground in auto sector as TN wrestles with political turmoil

 

http://wap.business-standard.com/article/economy-policy/andhra-gains-ground-in-auto-sector-as-tn-wrestles-with-political-turmoil-117021900522_1.html

 

Representative image

Andhra Pradesh has set its eyes on attracting investments to the tune of $2 billion, especially from automobile makers. The development comes even as neighbouring Tamil Nadu, which is already a hub for the auto and auto-component industry, has been facing political instability.

 

For instance, Kia Motors, which is a part of the Hyundai Group, is in the advanced stages of finalising its plans in the state, while auto major Hero is expected to commence construction of its new factory in the state at a cost of around Rs 600 crore. An e-mail sent to Hero did not elicit any response.

 

According to a senior official from the Andhra Pradesh government, companies like CEAT, Apollo Tyres, Bhart Forge, Ashok Leyland and others are also likely to invest in the state. Apollo Tyres recently announced that it would invest around Rs 500 crore in Andhra.

 

For any investor, the key factors that attract them are what incentives the states are offering. Since the competition is growing among the states, the key is 'ease of doing business' and infrastructure. Andhra Pradesh is placed well in both these aspects. The state has ranked number one in the country and it is also located in two industrial corridors.

"The speed with which a company can execute supporting infrastructure and the existence of major infrastructure, which ensures connectivity to the port and better movement on highways etc, is higher (in Andhra Pradesh). While we talk about multiple industrial corridors, there are only three major industrial corridors in the country — Delhi-Mumbai Industrial Corridor, Visakhapatnam–Chennai Industrial Corridor and Chennai-Bangalore Industrial Corridor. We are lucky that we host two of them. That is a big advantage in terms of infrastructure," noted the official.

 

Tamil Nadu, which is one of the largest automobile hubs in the country, will have a tough fight ahead to retain its status. Already, the state has lost some of the investments to its neighbour. For example, Japan-based utility vehicle manufacturer Isuzu Motors' Rs 3,000 crore investment and the Mahindra facility which Tamil Nadu lost to Andhra Pradesh. Now, new investments from Hero; Apollo, which already has a big facility in Chennai; possibly CEAT and Kia, whose parent company Hyundai is also already in Chennai; and others have moved to Andhra Pradesh.

[swarnandhra]

 

Tamil Nadu, which is one of the largest automobile hubs in the country, will have a tough fight ahead to retain its status. Already, the state has lost some of the investments to its neighbour. For example, Japan-based utility vehicle manufacturer Isuzu Motors' Rs 3,000 crore investment and the Mahindra facility which Tamil Nadu lost to Andhra Pradesh. Now, new investments from Hero; Apollo, which already has a big facility in Chennai; possibly CEAT and Kia, whose parent company Hyundai is also already in Chennai; and others have moved to Andhra Pradesh.