Kia Motors, a subsidiary of Hyundai Motor Group, is keen on setting up its manufacturing unit in India. Earlier reports have indicated that the South Korean automaker has finalized the southern state of Andhra Pradesh to set up its first manufacturing facility in the country. Recent reports now indicate that Kia might make a cumulative investment of as much as $1.6 billion, which equates to around Rs. 10,300 crores in the state for its production plant.

These reports further suggest that the investment will be made in two phases, with the first phase amounting to about Rs. 6,000 crore. Post completion, the first phase of the plant is expected to have an annual production capacity of 3 lakh units. Hyundai (Kia's parent company) might utilize the new Kia facility in the initial stages in order to garner faster returns on the said investment.

The Kia manufacturing factory is expected to be set in Penukoda, in the Anantapur district of Andhra Pradesh. This location is fairly close to Hyundai's production facility in Sriperumbudur, near Chennai. The process of land acquisition is expected to commence soon, while the first car from this production plant is expected to roll out by 2019.

Source: ET

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Maruti Suzuki started production at its new manufacturing facility in Gujarat from February 2017. The plant's production is still in its initial phases and it is thus not running on full load. At the moment, only the Baleno hatchback is being manufactured at this new factory.

The company produced around 4,000 units of the Baleno from the Gujarat plant in the first production month, i.e., February 2017. The output was increased in the succeeding month as 8,010 units were manufactured in March. From April, the plant has been commissioned to produce 10,000 units of the Baleno every month.

The Gujarat plant is currently sourcing assembly parts (both major and child) from Maruti's Gurgaon facility. However, one of the automaker's biggest vendors is currently setting up its plant in Gujarat, which is expected to be operational from May 2017. Post this, the Gujarat plant will get its required assembly parts from this vendor supplier.

As per the information available, Maruti Suzuki is planning to start production of the new-gen Swift at the Gujarat plant from October 2017. The company is targeting a production run of 10,000 units each of the Baleno and the Swift from the Gujarat factory from October 2017.

SAIC (Shanghai Automotive Industry Corporation) has signed a deal with General Motors for buying its production facility in Halol, Gujarat. This information was revealed through a company filing at the Shanghai Stock Exchange.

This deal is being seen as a major step towards SAIC's aim to enter the Indian market. We had earlier reported that the company has already started recruiting key executives for its Indian arm and is planning to launch its 'MG' car brand in the country.

General Motors is expected to cease production at its Halol plant from April 28, 2017. The American automaker had decided to sell the production plant after demand for its cars fell, which made the factory with a capacity of 1,10,000 units redundant. Now, General Motors is expected to use only its Talegaon factory for production of cars in the country.

In addition to the production facility, SAIC has also appointed Rajeev Chaba - former India head of General Motors, to be the Chief Executive Officer of MG Motor India and lead the Indian operations of the China-based automotive group.

Source: Hindustan Times

Volvo is reportedly looking for an Indian partner to set up a CKD assembly plant in the country. The company has been trying to establish local assembly of its cars for a fairly long time. However, no significant progress has been made in this department yet.

Volvo is currently the only mainstream luxury car company in the country which is bringing all its models as CBUs (Completely Built-up Units). This is resulting in the Volvo range having a price disadvantage compared to its immediate competitors that are being assembled locally. Import duties applicable on Volvo cars imported in India is currently in the range of 100-180%. Since the Indian luxury car market is growing with every passing year, Volvo is now stressing on setting up a plant for the local assembly of its cars.

According to media reports, the Swedish automaker is currently scouting for an Indian partner who can help the company to set up a CKD assembly plant. Volvo officials in India are also trying to gauge the magnitude of investment needed and the potential profitability from local assembly.

In India, Volvo cars compete against rivals from the three German brands - Audi, BMW and Mercedes-Benz. In order to compensate for the higher import duties applicable, Volvo is cutting down its margins, thus limiting the Indian arm's profits. With local assembly, the company is expected to be able to offer its cars at a more aggressive price point and at the same time, sustain respectable profit margins.

Source: Economic Times

Honda has acquired 380 acres of land in the state of Gujarat for a reported amount of around Rs. 1,000 crore. The said investment has been made to set up a new production facility in the future.

Interestingly, Honda's current manufacturing plants in Greater Noida and Rajasthan are currently operating below their full capacity. The two plants have a cumulative production capacity of 2,40,000 vehicles, but are currently utilizing just 60-70% of the available bandwidth. However, Honda is trying to avoid the risk of rising realty prices in the country and has thus acquired the land in anticipation of a future increase in demand for its vehicles.

The acquired land is located at Vithalapur, which is around 80 km away from Ahmedabad. Honda also has a production facility for two-wheelers in the same region. The land has been bought from individual owners.

Source: ET

Kia Motors is reportedly close to finalising the South Indian state of Andhra Pradesh as the site of its first manufacturing facility in India. As per media reports, the Korean automaker will likely be confirming the final site in Ananthapur district by the end of this month.

Kia has been in talks with various states for setting up its production facility in the country. Tamil Nadu and Andhra Pradesh were the front runners to get Kia on-board. The latter clearly seems to have offered a lucrative proposition to the Korean automaker, thus succeeding in bringing its production facility to the state's kitty. Interestingly, Tamil Nadu is home to Hyundai Motor Co., Kia's affiliate brand.

The Andhra Pradesh state government has reportedly offered around 600 acres of land to the automaker for setting up its manufacturing facility. The exact location of the factory hasn't been finalised yet. Kia is aiming to start producing small cars through the said facility from July 2019.

Source: Reuters

Ford Motor Co. has decided to cancel its plans of building a $ 1.6 billion production plant in Mexico. Instead, the company will now be investing $ 700 million to expand the capacity of its existing factory in Michigan, USA.

This announcement comes after US President-elect - Donald Trump - constantly criticised Ford's decision to invest in Mexico. During his presidential election campaign, Trump repeatedly stressed that, if elected, he won't allow Ford to build its planned Mexico plant. He also recently indicated that the elected government will impose a hefty Border Tax on cars that are imported into the US from Mexico. In the current scenario, no tax is levied on products that are imported from Mexico to the United States thanks to a trade agreement between the two countries.

Ford officials claim that the decision has been taken due to declining demand for Ford's popular models, including the Focus and the Fusion. The automaker is thus trying to fully utilise the capacity of existing plants, before making any bigger investments on all-new facilities. Ford will be building new electric, hybrid and autonomous vehicles at its Michigan factory. The increase in capacity of the Michigan plant will also introduce 700 new jobs in the country.

General Motors, another US-based automaker, appears to be the next manufacturer on Trump's radar, as the President-elect recently tweeted - "General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!"

Source: ET Auto

Maruti Suzuki will start selling cars manufactured at its Gujarat facility from February 2017. This information was revealed by the company's Chairman, RC Bhargava, who has also claimed that the new plant will be manufacturing 10,000 units of the Baleno hatchback during this fiscal year.

Suzuki has invested around USD 1,400 million in the new Gujarat facility. The upcoming factory will include two new vehicle assembly lines with an annual capacity of 2.5 lakh units each, and an engine manufacturing plant. Maruti currently has a production capacity of 1.5 million units from its existing two plants in Gujarat and Manesar.

With the Gujarat plant expected to roll out Balenos in the near future, Maruti will be aiming to cut down the long waiting period for the popular hatchback. It must be noted that the Baleno is also exported to various markets across the globe, including Suzuki's home country - Japan.

Source: ET Auto

According to recent media reports, Italian motorcycle manufacturer - Ducati Motor, is planning to set up a production facility in India. Currently, the automaker is in search for 100 acres of land in Greater Noida, UP, for the said facility. This will be the company's first manufacturing plant in the country. Local production or assembly will ensure more competitive price tags for Ducati bikes in India.

According to reports, Ducati recently met with the Greater Noida Industrial Development Authority (GNIDA) to talk about its land requirements. The authority officials have provided the rate list and land availability details, and have asked the company to submit an official proposal within this month. Representatives from the Italian automaker will soon be visiting the area to have a look at the available land.

Ducati India's current portfolio includes the Scrambler, Monster, Hypermotard, Multistrada, Diavel and the Panigale.

Source: Times of India

Apollo Tyres is setting up Europe's largest greenfield production plant in Hungary. The company is reportedly investing 475 million Euros in the said project. The plant will start its production operations from early next year, and will have a capacity to produce 62 lakh tyres annually. These tyres will cater to the demand of the European markets.

This will be Apollo's first greenfield plant in Europe. It is located at Gyongyoshalasz, which is 100 kilometers away from Budapest. Construction of the manufacturing facility had begun in April 2015. The plant will be producing tyres for passenger cars as well as heavy commercial vehicles. 55 lakh passenger car and light truck (PCLT) tyres and 6.75 lakh heavy commercial vehicle (HCV) tyres can be produced at the plant, annually.

In addition to Apollo branded tyres, the plant will also produce tyres under the Vredestein brand, which was acquired by Appolo Tyres Ltd. in 2009.

Source: Money Control