Kia Motors Corp. more likely to establish its unit in AP

The Dollar Business Bureau

South Korea’s automobile manufacturer is in the final process of establishing its first company- Kia Motors Corp. in India. The decision will be made shortly once the location is finalised. The two preferred states that the company wishes to establish its manufacturing units are Andhra Pradesh (AP) and Maharashtra.

According to the media communication released by the company, the new unit is likely to begin its operations either by the end of 2018 or the beginning of 2019.

Speaking to the media, an anonymous official from one of the chosen locations said AP seems to be more favourable and is likely to be finalised.

The official said if, Kia Motors Corp. finalises AP location for its establishment it would have better access to its parental company- Hyundai in the neighbouring state- Tamil Nadu. The other reason for the State finding favour is the World Bank’s recent survey notification which exhorts AP to be one of the top most states to run any business effortlessly.

The official also outlined the other favourable factors- AP offers favourable industrial corridors for upcoming projects and the state’s administration is known to consume less time and effort in completing infrastructural works related to any industry.

The other states of India offered almost the same financial incentives and packages in establishing any industry, but, failed to prove their worth when it came to ‘effortlessness’ in doing business.

Meanwhile  it has been revealed that the company’s officials are scouring four locations of  Chittoor and Anantapur districts in AP while some of the locations of Aurangabad district of Maharashtra too have been shortlisted.

The company has decided to establish its industry in an area of 500 to 600 acres. 

It is said that senior officials from AP and Maharashtra have held talks at the company’s headquarters in Seoul, South Korea.