Kia's China sales hit by dealer conflict, THAAD

Kia Motors said in a statement it would manufacture up to 300,000 cars a year at the new factory in the southern state of Andhra Pradesh, starting in late 2019.

India is the fastest growing major new vehicle market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016.

Kia Motors Corporation, which was founded in 1944, is Korea's oldest manufacturer of motor vehicles.

"The Chinese market in the first quarter was hard due to Kia's conflict with local dealers and the ongoing political issue that dropped consumer demand", Han Chun-soo, Kia's chief financial officer, said during a conference call after the automaker's first-quarter earnings report. The company plans to introduce a revamped Sonata sedan later this year, he said. Kia is aiming an annual production capacity of 3 lakh units from its Anantapur plant.

Kia Motors, the nation's second-largest automaker, saw its profit tumble in the first quarter, affected by soured consumer sentiment in China as well as a stronger local currency against the US dollar. The new facility is being set up with an investment of $2 billion and marks the company's entry into India.

The work on the plant would commence in September and the production of cars would start in the second half of 2019, he said.

More news: AT&T unexpectedly loses postpaid subscribers in first quarter

Kia Motors' new factory will be spread over 536 acres (2.16 sq. kms) and will have a manufacturing operation that incorporates stamping, welding, painting and final assembly facilities.

The Indian auto market is growing at a rapid pace and over 3.3 million new cars were sold in 2016.

Hyundai saw its China retail sales slump 14 per cent in the first quarter, dented by anti-Korea sentiment in the wake of Seoul's decision to deploy a U.S. anti-missile system which has angered China. Going by this statistic, India is poised to become the third largest auto market in the world by the end of 2020.

"It depends if Kia would look to differentiate its product (sedan) from the taxi segment".

Kia is the second big ticket investment in AP in the last three years in the automobile manufacturing sector after the Hero Motors plant in Chittoor district.

Related Articles

  • Sheriff: 'Bachelor' star refused to answer door after crash

    Sheriff: 'Bachelor' star refused to answer door after crash

    When the dispatcher asks if Soules knows how to do CPR, he says he can not but asks an unidentified person if he or she knows how. While several of Soules' violations were speeding tickets, a few have involved illegal drinking and reckless driving.

    Mario Kart 8 Deluxe Switch Game Review

    When we first reviewed Mario Kart 8 when it launched on the Wii U in 2014, our reviewer gave the title an excellent critique. The new Coin Runners mode, for example, has competitors racing around the open course to collect the most coins.
    Harden has 37 points, Rockets rout Thunder, Westbrook 118-87

    Harden has 37 points, Rockets rout Thunder, Westbrook 118-87

    Everybody in the arena and everybody watching on their televisions, phones, and tablets knew who was going to take the last shot. But sports are emotional, and we've all said things in moments of passion we either didn't mean or we come to regret.
  • Honeywell beats Street 1Q forecasts

    Honeywell beats Street 1Q forecasts

    CWM LLC now owns 856 shares of the conglomerate's stock worth $100,000 after buying an additional 274 shares during the period. Oregon Public Employees Retirement Fund raised its stake in Honeywell International by 32.7% in the third quarter.
    Patriots unlikely to trade Butler

    Patriots unlikely to trade Butler

    As the NFL Draft approaching, a deal between the Saints and Patriots is unlikely according to Peter King of MMQB.com. Butler will now likely team up with Stephon Gilmore as the two corners in the Patriots secondary.
    Bayern title charge slowed by draw vs. Mainz

    Bayern title charge slowed by draw vs. Mainz

    It was a poor performance from double-chasing Bayern ahead of Wednesday's German Cup semi-final at home to Borussia Dortmund. Elsewhere, Max Kruse scored four goals as Werder Bremen came from behind to beat second-from-bottom Ingolstadt 4-2.
  • Browns have zeroed in on choice with No. 1 draft pick

    On Tuesday, Patriots player personnel director Nick Caserio didn't say "no" when asked if Garoppolo is available. Garoppolo started the first two games of the 2016 season while Brady was serving his Deflategate suspension.
    Google search changes tackle fake news and hate speech

    Google search changes tackle fake news and hate speech

    Now both boxes have gone, and Google's almighty algorithm has been tweaked so that such content is less likely to rise to the top. Google employs algorithms to identify reliable sources from the billions of indexed pages.

    Canada's Trudeau defends dairy system after Trump blast

    And with Trump's popularity in rural areas, especially with farmers, the issue was ripe for his involvement. Several petitions have been sent to policymakers looking for relief.
  • Cub Swanson Preparing for Fatherhood After Win Over 'Awkward' Lobov

    Cub Swanson Preparing for Fatherhood After Win Over 'Awkward' Lobov

    But he will constantly be in training to be able to get back in action by before the year ends, or by the early part of 2018. I feel like I'm a lot smarter at it, I enjoy pushing myself, so I'll be training.
    Where medical marijuana is legal, illegal use climbs

    Where medical marijuana is legal, illegal use climbs

    The new conclusions, published in JAMA Psychiatry , are drawn from three national studies conducted between 1991 and 2013. Now Nevada plans to step it up a notch by being the first state to openly allow businesses to host public marijuana use.
    Elizabeth Thomas' sister speaks for first time since her return

    Elizabeth Thomas' sister speaks for first time since her return

    He also faces charges in Maury County, Tennessee for the sexual relationship with the girl and with aggravated kidnapping. He appeared in court for the first time Monday where a federal magistrate ordered he remain in custody until U.S.