Kia Motors India denied reports of moving its Andhra Pradesh plant to neighbouring Tamil Nadu. The reports said Kia Motors was in talks with Tamil Nadu government to relocate its plant from Anantapur to the neighbouring state for a variety of reasons
The Korean auto-maker, in a statement, said the company has been receiving full support from the Andhra Pradesh government under the leadership of Chief Minister YS Jagan Mohan Reddy. Kia has a long-term commitment to the Indian market and has made an investment of USD 1.1 billion in the manufacturing plant at Anantapur. We will continue to offer worldclass,
vehicles and innovative mobility experience to our valuable customers in India…” Kia said.
The facility in Anantapur, spread across 536 acres, has an annual capacity of three lakh vehicles. The plant can produce hybrid and electric vehicles.
Earlier, Andhra Pradesh Government condemned the Reuters report which said KIA Motors was planning to shift the $1 Billion plant from Andhra Pradesh to Tamilnadu.
Special Chief Secretary to the Industries, Investments and Commerce Department Rajath Bhargava issued a press release stating that the Reuters news is not true. It also mentioned that KIA and Government of Andhra Pradesh are working together for the plant.
YSRCP’s Senior Leader and Rajya Sabha MP Vijaya Sai Reddy also denied the report in a Tweet.