Rumour: Kia planning to setup second plant in India

According to a media report, Kia is planning to set up a second manufacturing plant in India.

At present, Kia's only manufacturing unit in India is located at Anantapur in Andhra Pradesh. This facility has an annual production capacity of 3,00,000 units. The report states that Kia expects to reach full capacity by 2022. Kia is also rumoured to launch an MPV to rival the Ertiga in the Indian market. The carmaker could start facing capacity issues once the Sonet compact SUV and the MPV are launched. It is believed that the Sonet will be made only in India and could be exported to other countries

It has been reported that Kia has started scouting for a new site for its second plant. It is also believed that the company might be looking at sites outside Andhra Pradesh.

Kia currently has two products on sale in India. The Seltos SUV was the first model to be introduced, which was followed by the Carnival MPV. The upcoming Sonet is expected to compete with the Hyundai Venue, Tata Nexon, Ford EcoSport, Maruti Vitara Brezza and the Mahindra XUV300.

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