Kia Moving Out: AP Gets Massive Bad Press Nationally and Internationally

International News Agency, Reuters carried a Sensational New Item claiming that Kia Motors is planning to pull out of Andhra Pradesh and relocate to Tamil Nadu. The story was later carried by American Stock Exchange Website, NASDAQ and all other international and nationally reputed Business and media houses.

The news spread like a wildfire as it said the South Korean Automobile Giant has come to the decision due to the change in policy stances by Andhra Pradesh Government after YSR Congress came to power. This will be a deathblow to AP if it happens.

“News report of Kia Motors shifting from Andhra Pradesh is not true. KIA and the state government are working together. We strongly condemn the news,” clarified Rajath Bhargava, Special Chief Secretary, Industries, Investments & Commerce, Andhra Pradesh said. However, the damage may have been already done.

Whether Kia ends up moving or not, this coverage in the international and national media will do irreversible damage to the investor sentiment in Andhra Pradesh. Already the bad signals were sent when the Government tried to renegotiate signed PPAs and with the bringing of 75% Reservations to the Locals Rule.