28Jun/100
Kia eyeing India entry by 2012
According to a report by leading auto magazine AutoCar India Kia Motors, a part of the Hyundai group, is eyeing the Indian market. In a report in a South Korean daily, Chosun Ilbo, the company says it wants to build a plant in India to produce 300,000 vehicles a year starting from 2012. "We're conducting a feasibility study to select a site for the plant near Chennai," a Kia spokesperson said. "Based on data from Hyundai Motor which entered the Indian market in 1998, we're estimating costs and time to build the plant, as well as examining demand forecasts and Hyundai's sales figures there," he added.
Kia's move has been apparently motivated by its wish to find an alternative market to Europe, the destination of the majority of its exports, where demand has been sluggish due to the recession. Incidentally, HMIL has also been looking at diversifying its export destination. Hyundai has two plants in Chennai with a combined annual output of 600,000 cars. Of the 560,000 units produced at the plants last year, Hyundai sold 290,000 in India. Kia's line up includes models such as the Picanto, Sorento, Sportage, Ceed and Forte.