Kia Shifting $1.1 Billion Plant to Tamil Nadu? Andhra Pradesh Government Rejects Media Reports
Kia Motors logo (Photo Credits: Kia/Twitter)

Amaravati, February 6: A day after reports surfaced that South Korea's Kia Motors is planning to shift its USD 1.1 billion-plant from Andhra Pradesh to Tamil Nadu, the Jagan Mohan Reddy government rejected the media claims. Rajath Bhargava, Special Chief Secretary, Industries, Investments and Commerce said that news report of Kia Motors shifting from Andhra Pradesh was not true. Kia Carnival 2020 MPV: India Launch, Expected Prices, Features, Bookings & Specifications - Everything To Know.

Bhargava further added, “KIA and the state government are working together. We strongly condemn the news.” Yesterday reports surfaced that the South Korean company is shifting its fully operational plant out of Andhra Pradesh due to policy changes last year.

The plant was inaugurated last year in December in Penukonda in Anantapur after two years of construction. It is the first manufacturing plant of Kia in India. According to reports, it has an annual capacity of manufacturing 3,00,000 units annually and around 12,000 direct and indirect jobs. Auto Expo 2020: Kia Carnival Premium MPV Launched in India From Rs 24.95 Lakh; Prices, Features, Variants & Specifications.

However, Kia told Reuters that the motor company would fully utilise its facility at Andhra Pradesh before considering further expansion. The firm is reportedly disappointed over the state’s new job policy to give 75 percent reservations to locals. The company is also worried after reports claiming that the YSRCP government is mulling a review of incentives given by the previous government led by Telugu Desam Party to set up the plant. Kia launched an SUV model Seltos in the Indian market last year.