Shocking: Kia Plant in AP Shifting to Tamil Nadu

February 06, 2020 09:55

Shocking: Kia Plant in AP Shifting to Tamil Nadu:- South Korea's Kia Motors stepped into Andhra Pradesh's Anantapur district and inaugurated their plant. It has an annual capacity of 3,00,000 units. The latest shocking update says that the plant will soon move to Tamil Nadu. Kia is facing problems with the government of Andhra Pradesh after which the talks are initiated with the neighboring state. Kia focused on the Indian market and they hinted of a long-term commitment to the Indian market. There are strong speculations that 1.1 billion USD plant will soon move out of AP. It is due to the policy changes that took place last year.

Reuters broke this news saying that the officials from Kia already approached the Tamil Nadu government with a proposal. It is hardly six months that the Kia plant started in Andhra Pradesh. Kia is unhappy with the AP Government's proposal of offering 75% of jobs to locals. Kia argues that the scale labor should be imported from other countries and with locals not fitting well in the bill, the plans of moving are initiated. Tamil Nadu which is known to be famous for the automobile industry is said to have welcomed Kia.

It was in Aurangabad, the first Kia plant was planned. AP ex-Chief Minister Chandra Babu Naidu worked hard in bringing Kia to Andhra Pradesh. With the government changing in the state, the proposals too changed and now Kia is all set to move out from the state.