Kia Bringing More Investments to AP

Kia Motors has roped in a consortium which is in the final stage of discussions with Andhra Pradesh government for setting up a vendor eco-system to support the Kia integrated plant that is coming up in Anantapur district of Andhra Pradesh.

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The consortium consists of auto component manufacturers which are set to make approximately USD 1 billion investment in a supply chain. The vendor-based supply chain will be set up in two phases, similar to Hyundai Motors’ 80-vendor support in Tamil Nadu.

Kia’s own vendor supply chain will help it keep final car manufacturing cost down and competitive in the Indian market. The plan is to have the eight percent of some 2,000 components in each car to be made by the local vendors.

Kia’s first car will roll out by the end of 2019 with over 50 percent of the components made by the supply chain vendors in Andhra Pradesh. The supply chain will have 18 vendors with over 9,000 employees. This company will emerge as a lifeline to drought-ridden Anantapur district.