Kia Motors commences trial production at Anantapur plant

Kia Motors, the eighth largest automaker, has commenced trial production at its greenfield  manufacturing facility in Anantapur in Andhra Pradesh. This is Kia's 15th. Plant and signifies the completed construction of the new 536-acre manufacturing facility, and marks the arrival of Kia’s new flagship car for India, the Kia SP2i – an exciting new SUV based on the Kia SP Concept, first showcased at India’s Auto Expo 2018. The Kia SP2i will bring Kia’s exacting standards for quality to the Indian market, as well as the brand’s reputation for cool, modern design and cutting-edge in-car technology. Trial production of the SP2i will enable Kia to synchronize and fine-tune the brand’s manufacturing equipment and technologies before series production commences later in 2019. Kia marked the start of trial operations at the plant, in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu and Shin Bongkil, Ambassador of Republic of Korea. The ceremony was also attended by Han-Woo Park, President and Chief Executive Officer (CEO) of Kia Motors India and Kookhyun Shim, Managing Director (MD) and CEO of Kia Motors India. Kia also consolidated its Future Mobility Partnership with the government of Andhra Pradesh by handing over an example of the new Kia Soul EV. The new EV is part of Kia’s growing portfolio of advanced, eco-friendly powertrains. This partnership reinforces Kia’s commitment to supporting the Andhra Pradesh government in promoting the uptake of EVs and developing a local EV charging infrastructure. Han-Woo Park – President and CEO of Kia Motors Corporation said, “India will play a singularly important role in expanding Kia Motors’ global footprint, and today feels like the start of another chapter in our Indian success story. Commencing trial production is a significant moment that we have been preparing for as we take on the challenges of future mobility across the country.”

'Advance electric vehicle plan for India'

Naidu has called on Kia Motors to advance its electric vehicle roll out schedule and lead the way for the growth of the EV movement in the country.

Launching the trial production at the $ 1 billion Kia plant set up in the backward district of Anantapur in Andhra Pradesh, he said electric mobility will be a big game changer and by advancing EV plans it will provide big boost to the emerging segment and also prove filip to the EV manufacturing in the State. The State had earlier come out with electric mobility policy to encourage EVs.

The South Korean automotive company had recently inked a memorandum of understanding with the Andhra Pradesh Government to develop the electric mobility infrastucture. As a part of that MoU it handed over three models of Kia Motor's Nero cars, which include EV, plug in and hybrid.

Towards further strengthening this engagement, Kia on Tuesday handed over its Soul electric car to the Chief Minister.

Appreciating the new car and the earlier Nero models, Naidu said that the future belongs to electric mobility and the earlier we take to them it would be better for the country.

Having managed to attract about $2 billion in investments from Kia and its vendors, Naidu hoped this will help attract a number of investments from other the Koran companies as also from other auto sector companies.

He also hoped that Kia as an anchor investor is likely to attract a number of micro, small and medium enterprises to set up their facilities.

Mentioning about the rapid pace at which the new car plant has been set up, he said that this would not have been possible but for the conducive environment for investments into the State.

Referring to Andhra Pradesh being ranked number one in 'Ease of Doing Business', he said that more than $5.8 billion investments are now under various stages of implementation.

Naidu said these will open up a number of jobs for youth. The Kia plant along with its vendors are expected to offer 10,000 jobs both direct and indirect, he said.

The State is making efforts to attract more companies from the automotive sector and already Isuzu, Ashok Leyland, Hero Motocorp, Apollo Tyres among many others have invested in the State and more companies are likely to follow, he said.  

Kia's new plant

Kia’s new Anantapur manufacturing facility occupies 536 acres and is capable of an annual production capacity of up to 300,000 units, boosting Kia’s global manufacturing capability. The plant is poised to create over 3,000 direct and 7,000 indirect jobs across the Andhra Pradesh region. A $2bn investment by Kia and its vendor partners ensures the availability of world-standard technologies and the development of high-quality local manufacturing skills. The new integrated Anantapur plant employs the latest production technologies, with more than 300 robots automating the press, body and paint shops The plant houses a five-acre training facility that offers a Basic Technical Course (BTC) in automobiles in collaboration with the Andhra Pradesh State Skill Development Corporation (APSSDC), helping develop manufacturing skills among young people. Safety performance during vehicle production is another highlight of the facility. “Today represents a moment of pride and reflection for us as we officially commence trial production of Kia’s new Indian manufacturing plant. This is the latest important step in our entry into the Indian automobile market. We started construction of the site just a couple of months more than one year ago, and to have started manufacturing operations here so soon is testament to our bold plans and strong commitment to India,”Kookhyun Shim , Managing Director and CEO of Kia Motors India said. “Globally, Kia constantly seeks out new ways to reduce consumption and minimize waste across the entire automotive lifecycle, and we believe in constantly monitoring results to ensure we remain clean and green. Here in Anantapur, we have created one of the most technically-advanced, cost-effective and labor-efficient manufacturing facilities in the world. Today, we officially begin our journey to becoming one of the top five automakers in India by 2021, with a new model that will appeal to forward-looking and outgoing Indian buyers,”he added. In addition to world-class production competencies, the plant is equipped with high-end robotics and artificial intelligence (AI) technologies. Kia Motors said it is committed to meeting the socio-economic and ecological needs of humanity, and the plant uses environmentally-conscious techniques, such as 100% water recycling, to fulfill the company’s responsibilities for developing sustainable and mutually-beneficial production practices. Since 2003, Kia’s commitment to reducing the environmental impact of vehicle production has seen a 30% decrease in per-unit consumption of water resources globally. Kia Motors also seeks to maintain high air quality around its plants, with the company achieving a 44% per-unit reduction in local atmospheric pollutants since 2003. Each of Kia’s manufacturing plants has installed independent systems to monitor the use of potentially hazardous chemicals on a regular basis. These high global benchmarks that Kia Motors has established at manufacturing facilities around the world have been brought to the Anantapur plant, making it Kia’s most modern and energy-efficient production facility. Kia focuses on creating eco-friendly cars, raising the efficiency of production and recycling processes. While applying Internet-of-Things technologies to its products, the company also cooperates with its partners to expand the level and scope of production improvements, developing products and processes that are truly futureproof.