Kia Motors to start work on $1.1-bn India manufacturing facility

Kia Motors

Hyundai Motor 005380.KS forecast a gradual earnings recovery after posting a smaller-than-expected 21 percent fall in quarterly profit as sales of higher-margin cars cushioned the impact of a USA recall and revenue decline in China.

The announcement came after Kia and Hyundai Motor suffered a March sales slump in China, their biggest market, and sharply cut production in the wake of Seoul's decision to deploy a U.S. anti-missile system, which angered China. The plant will have an installed initial annual capacity of 300,000 units.

Kia has also announced two cars slated for production in the new facility, a compact sedan and a compact SUV, which fit perfectly into the changing scenario of the vehicle market in India.

The segment, owing to significant demand from the taxi market, is expected to grow, according to Abdul Majeed, partner and national auto practice leader at Pricewaterhouse Coopers.

A part of the Hyundai Motor Group internationally- Kia Motors is all ready to set up shop in India by the end of 2018 or early 2019.

Kia Motors, an affiliate of Hyundai Motor (005380.KS), said it plans to start production of the factory in Anantapur District in the state of Andhra Pradesh in the second half of 2019.

Senate confirms No. 2 at Justice; will lead Russian Federation probe
Rod Rosenstein was overwhelmingly confirmed to be the next deputy attorney general, after a Senate vote that was 94-6 Tuesday. Rosenstein has said he will make that determination once fully briefed on the status of the investigations.

Kia would adjust its China production to reduce inventories, cut costs and launch new models including a small crossover to minimise the impact of the political row, he said.

Kia will invest $1.1 billion in its manufacturing plant in India.

The company said construction of a new manufacturing facility in India will enable it to maintain its position as one of the world's fastest-growing automobile brands.

Forecasts suggest that the country will become the third- largest vehicle market by the end of 2020. It is struggling to win consumers over with a sedan-heavy line-up in a world where sport utility vehicles (SUVs) are the hot sellers. "This is Kia Motors's ultra-mega integrated project which will add to the AP's fast developing automotive ecosystem and will have a spin-off effect on the industrial development and employment in the region", the official pointed out.

The reproduction of the story/photograph in any form will be liable for legal action.

Related:

  • Sony Cuts Ties with Dr. Luke

    Sony Cuts Ties with Dr. Luke

    Luke claimed it was Kesha who owed him $1.3 million in unpaid royalties, and failed to provide notice and a 30-day cure period. Luke and Sony Music have made any official comments regarding the recent termination of Gottwald's relationship with Sony .
    United says it won't use police with bumped passengers

    United says it won't use police with bumped passengers

    More than 90 percent of passengers bumped from a flight on a major U.S. airline a year ago volunteered, according to the U.S. Normally, when trying to rectify an overbooked flight, airlines offer passengers sums of money before they board the plane.
    Dodgers bring up top prospect Cody Bellinger

    Dodgers bring up top prospect Cody Bellinger

    The Los Angeles Dodgers announced that one of the top power-hitting prospects in baseball will be making his way to the majors. In Triple-A and obviously up here, the ball moves and it's not going to be a straight heater all the time.
  • Nintendo Switch sales are off to a very strong start

    And Nintendo expects to sell about 35 million Switch games , overall, in the coming fiscal year. Adding in the Wii U version , the game sold more than 3.84 million copies.
    Turkish police detain more than 1000 suspected followers of cleric Gulen

    Turkish police detain more than 1000 suspected followers of cleric Gulen

    They said the crackdown targeted the network's structure in the police force. Turkish-Iraqi border and is known as Zab in Iraq. This is published unedited from the PTI feed .
    Erin Moran's husband reveals her tragic final days with skin cancer

    Erin Moran's husband reveals her tragic final days with skin cancer

    She also starred in the same role in the spinoff titled " Joanie Loves Chachi " which aired from 1982 to 1983. Authorities say former "Happy Days" star Erin Moran likely died from cancer at her southern in home.
  • Trump Administration to Brief US Lawmakers on North Korea Strategy

    In Beijing, Chinese foreign ministry spokesman Geng Shuang said THAAD would upset the "strategic balance" in the region. Security Council meeting Friday created to get nations to enforce existing penalties on North Korea and weigh new ones.
    It's being used by police to try to expose who murdered her.

    It's being used by police to try to expose who murdered her.

    Prosecutors say her husband's alibi that a masked intruder attacked him first and then went after his wife just doesn't add up. Now Connecticut authorities have charged Mr Dabate with murder, tampering with physical evidence and making false statements.
    Google to Revise Search Rankings to Downplay Fake News, Hate Speech

    Google to Revise Search Rankings to Downplay Fake News, Hate Speech

    Google has commenced tweaking its search algorithm to curb unscrupulous circulation of fake news and hate speeches online.
  • Featured Stock Overview: Intel Corporation

    Heading into the earnings release, covering analysts have a consensus target price of $39.97 on Intel Corporation shares. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating.
    Who knew Trump would go after Canada?

    Who knew Trump would go after Canada?

    However, US lumber companies are satisfied with the decision, following Trump's pledge to put America first. If confirmed, the tariffs would then have to be approved by the US International Trade Commission (USITC).
    Eric Thames bashes his way into Brewers' record book

    Eric Thames bashes his way into Brewers' record book

    It was Blackmon's sixth homer of the season and followed a pinch-hit double from Pat Valaika - his first hit of the season. Orlando Arcia's 42-game errorless streak came to an end when the Brewers shortstop committed two errors on Monday night.

Comments

Latest news

Mets push back Syndergaard, start Gsellman vs. Braves
Cespedes left last Thursday's loss to Philadelphia with a cramp in his left hamstring and returned to the lineup Wednesday. Cespedes pulled up lame after rounding first base on a one-hop double in the bottom of the fourth inning.

US Says Turkish Airstrikes In Syria, Iraq Kill Partner Counter-ISIS Fighters
Separately, a YPG spokesman said 20 fighters had been killed there and 18 more injured, Kurdish media network Rudaw reported. The US has expressed "deep concern" at Turkish air strikes that killed about two dozen Kurdish fighters in Syria and Iraq.

Body of missing Joliet toddler found in mother's home
Semaj was last seen wearing a gray, long-sleeve shirt with a cat face; and blue jeans, according to the sheriff's office. Ackerson said nothing investigators had learned indicates that the girl did not wander off on her own.

Turkey election board rejects petitions to annul referendum
The Kremlin said that Putin phoned Erdogan and congratulated him on the "successful conduct" the referendum. Turkey's main opposition party has filed a formal req.

India says will 'explore all options' to bring spy Kulbhushan Jhadav back
Pakistani security agencies kidnapped him and presented him to the military tribunal as an Indian agent". Indian Home Minister Rajnath Singh is also of Sushma's view.

Roberts: Senate confirms Trump's pick for agriculture secretary
David Perdue (R-GA) - cousin of Sonny Perdue - declined to participate due to their close connection. The Senate has confirmed former Georgia Gov.

United States wants to bring North Korea 'to path of dialogue'
Meanwhile, US senators have arrived in Washington for an extraordinary briefing on the threat posed by North Korea. North Korea's growing nuclear and missile threat is perhaps the most serious security challenge confronting U.S.

Braves Fans Share Excitement About New SunTrust Park
Brandon Phillips and Adonis Garcia gave the Braves the lead with back-to-back home runs, giving Atlanta a 4-2 advantage. Chapman got his third save on the season. "The thing was dancing around pretty good", Braves manager Brian Snitker said.

Malcolm Butler trade rumors
The report noted that New Orleans likes this year's deep and loaded draft class too much to give up one of their picks. Butler can skip the offseason program, including next month's OTAs, but those are voluntary anyway.

Dale Earnhardt Jr. announces retirement
The weight of the NASCAR world was thrown onto the young driver in 2001 when his father was tragically killed in the Daytona 500. Hendrick Motorsports announced Tuesday morning that Dale Earnhardt Jr . will retire from NASCAR at the end of the 2017 season.

Derek Jeter, Jeb Bush win auction for Miami Marlins
When Jeter, who lives in Tampa, retired after the 2014 season, he expressed interest in owning a baseball franchise. A source told the Herald that Bush would be the "control person", and would have ultimate control of the franchise.

Drake to Host First Ever NBA Awards Show
The inaugural NBA Awards on TNT will take place on Monday, June 26, at Basketball City at New York City's Pier 36 at 9 p.m. Rapper Drake has been announced as the host of the first-ever NBA Awards on TNT .

The world's first malaria vaccine is coming to Ghana, Kenya, and Malawi
The World Health Organization (WHO) announced a vaccine to prevent malaria that could be released as soon as next year. The vaccien is made from a recombinant protein and ti is the world's first licensed malaria vaccine .

Kentucky unemployment fell in majority of counties in 2016
The statewide unemployment rate for OH was 5.3 percent, meaning all area counties were below the statewide average in March. The unemployment rate declined in 85 of Ohio's 88 counties and increased in the remaining three.

Trump administration to review dozens of US national monuments
Gary Herbert also says he's invited Interior Secretary Ryan Zinke and President Trump to visit the Bears Ears monument . According to the paper the review will "discern whether [the monuments] are within the law's intent".

Other news