One More Cars Major Heading to Sri City

Sri City in Andhra Pradesh is going to add yet another feather to its cap. Hyundai sibling Kia Motors is going to make its entry into India by setting up its maiden factory in Sri City. The company will be very soon announcing its strategy in coming to India and is looking to invest around Rs 5,000 crore with an initial capacity to produce 3 lakh cars annually

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A high-level team from the Korean company has been camping in India for the last many months and is studying various proposals put up by the states. It is said that Andhra Pradesh leads a list of states which the company has shortlisted for potential investments. Other states in the fray are Gujarat and Madhya Pradesh.

The formal announcement is likely in the next couple of weeks while Kia team is working on last-minute details, and looking at potential investment benefits offered by the state governments, before they make an announcement. A Top source confirms that Andhra Pradesh is the front-runner for now. Sri City is the first choice as it is within 80 km of Hyundai’s Sriperumbudur plant (near Chennai) in Tamil Nadu. Suppliers will be close, and also the port connectivity will not be far,