Kia India to expand capacity after 2025, aims to roll out 400,000 cars in FY25
- Kia started India operations with a 300,000 annual production capacity plant and expanded it to 350,000 units in 2022.
Kia India aims to expand its production capacity after 2025, Mint has reported. The South Korean car manufacturer currently has a local production facility at Anantpur in Andhra Pradesh, which the company started with an annual production capacity of 300,000 units and expanded to 350,000 units in 2022. However, at this moment, the automaker has no plan for capacity expansion. Also, the automaker is aiming to produce 400,000 cars in the next fiscal.
The report has quoted Hardeep Singh Brar, national head of sales and marketing at Kia India, saying that the automaker will explore capacity expansion options only after 2025, despite its current manufacturing plant operating at more than 100 per cent capacity. The Kia India official has reportedly said that the automaker now seeks to de-bottleneck the existing facility further by removing the inefficiencies and optimizing the manufacturing processes to enhance its production to 400,000 units.
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In this fiscal, during the April-August period, Kia India rolled out 135,000 cars from its local plant. Also, the automaker is expecting to end this financial year with sales of 330,000 cars, including exports to overseas markets, stated the report. It further stated that the automaker has no plan to set up a second production facility in the country.
The report additionally said that Kia may optimize production to focus on a particular model, such as Seltos, which contributes the majority of its total sales volume in the Indian market.
Kia's sister brand Hyundai has recently acquired the General Motors' Talegaon factory, where the automaker is set to commence production. However, Kia has no plan to utilize that facility. Speaking about if Kia plans to utilize Hyundai's production facility, Brar said that it is too early to comment on that. "Right now, we can go up to 400,000 units in the Bengaluru plant. We have a year or two before we start thinking along those lines. We expect to hit 400,000 units next fiscal year," he added.
