TARGETING NEW BUSINESS
Kia Motors closes in on Andhra Pradesh state for first Indian car plant
South Korea’s vehicle company is close to finalising the southern Indian state of Andhra Pradesh as the site for its first factory in the country
New Delhi/Seoul — South Korea’s Kia Motors is close to finalising the southern Indian state of Andhra Pradesh as the site for its first factory in the country, as it speeds up efforts to start production in the fast-growing market, a source familiar with the matter said. Reports of Kia looking to pick a site have been doing the rounds for a while, but an Andhra Pradesh administration official told Reuters in 2016 the state was the frontrunner given its proximity to Tamil Nadu state — home to plants of Kia’s affiliate, Hyundai Motor. The Korean firms, jointly the world’s No5 car maker, are chasing new business after missing targets over the past two years. And now there are worries sales to the US, one of their biggest markets, could be affected by protectionist trade policies under President Donald Trump. India, however, remains a bright spot, with Hyundai — the country’s No2 car maker by sales — reporting growth there. Kia is hoping to leverage its affiliate’s supply chain network ...
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