Hyundai Motor reports 21 percent drop in 1Q profit
- Author: Kyle Warner Apr 28, 2017,
Apr 28, 2017, 0:59
Kia plans to commence local sales of cars produced at the new facility towards the end of 2019, once mass production begins in Anantapur.
The world's fifth-biggest automaker together with affiliate Kia Motors 000270.KS reported on Wednesday a first-quarter net profit of 1.33 trillion won (£921.82 million), its 13th straight year-on-year quarterly fall. Kia will be competing with Maruti Suzuki, parent Hyundai, Honda, Mahindra & Mahindra and Tata Motors.
Korean small vehicle maker Kia Motors has finally announced it would be entering the Indian auto market, with an investment of $1.1 billion (about Rs 7,000 crore). The plant will be located in Anantapur, Andhra Pradesh and will be spread over an are of 536 acres. Another 758,000 vehicles were exported past year, when shipments grew 16 per cent. The plant will have a capacity of approximately 3,00,000 cars annually.
In Andhra Pradesh, Kia Motors along with his associates and vendors, will be setting up a greenfield vehicle manufacturing facility in Erramanchi in Anantapur district with a total investment of $2 billion.
Hyundai Motor, the maker of Tucson sports utility vehicles and Sonata sedans, said it sold 206,000 cars in China during the first three months, down 14 percent from a year earlier.
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 USA anti-missile system, which angered China. Kia is also stressing on differentiating itself from its owner company - Hyundai, in the Indian market.
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The work on the plant would commence in September and the production of cars would start in the second half of 2019, he said.
India is the world's fifth biggest auto market and is growing rapidly. Forecasts suggest the country will become the third-largest auto market by the end of 2020.
The intitial hit products from the brand in India will be a compact SUV and a compact sedan.
Kia Motors will also establish a township for their employees and an advanced training centre.
Sales in China plunged 44 per cent last month.