South Korean automaker KIA Motors has announced an additional investment of $54 million in Andhra Pradesh for an ‘upcoming project’, where the company already has a manufacturing facility, in Anantapur district. KIA Motors India Managing Director and CEO Kookhyun Shim made the announcement at the “Mana Palana - Mee Suchana” (Our rule, your suggestion) session held on Thursday. The session is part of a weeklong program, where the YSRCP government is reviewing its governance over the past year by inviting suggestions from various beneficiaries and stakeholders.
Announcing the investment at the event, Kookhyun Shim said, “We are happy to share with you, we are going to make an additional investment of 54 million USD for upcoming project despite the COVID-19 global pandemic. As we prosper, we will invest more and create more business opportunity in Andhra Pradesh.”
He went on to say that Andhra Pradesh is a favourable place for investment for various reasons. “From foreign investors’ point of view, I believe Andhra Pradesh has strong advantages to develop as an industrial hub because it has availability of human resources, qualified and accountable government officials, large sites for industrial development and well connected means of transportation, such as airport, sea port, highway connectivity,” Kookhyun Shim said.
KIA Motors, which suspended production at its Anantapur facility in March, because of the pandemic resumed production recently on May 18, with lockdown restrictions being lifted.
“We appreciate your effort to prevent the spread of coronavirus and at the same time lessen the economic impact during COVID-19 lockdown,” Kookhyun Shim said, addressing the government officials present.
KIA, which launched its SUV Seltos in India has seen massive demand for the car, having sold 84,903 units in the year ended March 2020, as per SIAM data.
Earlier in February, a controversy erupted with Reuters reporting that KIA Motors was planning to shift its 1-billion-dollar plant away from Andhra Pradesh to Tamil Nadu. The report came at a time when the YSRCP government had started to earn a reputation for driving away multiple investments and projects in Amaravati and Vizag. KIA Motors India had denied the report, saying the company was receiving full support from the Andhra Pradesh government.