Kia Motors (Hyundai’s sister concern) is planning to enter the India car market. The company plans to set up a plant in Chennai (near the Hyundai India plant). The manufacturing facility is expected to be ready by 2012 with an installed capacity of 3 lakh units. The company says tbhat they are conducting a feasibility study to select a site for the plant near Chennai. This is being done based on data from Hyundai India helping Kia in estimating costs and time to build the plant, as well as examining demand forecasts. Kia’s move is motivated by the downturn in Europe, its largest export market and its strategy to expand in other markets.
Source – FE
