Kia Motors not moving out of Andhra Pradesh, company issues clarification

After reports earlier this week surfaced that Kia Motors is likely to shift base from Andhra Pradesh to Tamil Nadu, the Andhra Pradesh State Government brushed them away as untrue. In the latest, the South Korean automobile company also has released a statement, clarifying that their plant will continue to operate from Andhra Pradesh.

On Friday, Kia Motors issued an official statement, putting all rumours to rest. The manufacturing company categorically stated that the reports surfacing are false. The company added that they have been receiving full support from the Andhra Pradesh State Government and they are committed to the Indian market while running manufacturing operations from their $1.1 billion plant in Anantapur.

On Wednesday, it was reported that Kia Motors was planning to shift its plant from Anantapur to Tamil Nadu, owing to the new policy changes by the AP govt. Reports suggested that Kia Motors was facing problems in AP, due to which the automobile firm was in “preliminary negotiations” with the Tamil Nadu government to shift its plant from the State. However, both Andhra Pradesh and Tamil Nadu State Governments denied the reports soon after they went viral.

Speaking on behalf of the AP government, Rajat Bhargava, the Special Chief Secretary for Industries, Investments, and Commerce in Andhra Pradesh said that the reports were completely baseless. YSRCP National Secretary V Vijayasai Reddy and Andhra Pradesh Finance Minister Buggana Rajendranath also rubbished the reports.

The manufacturing plant of Kia Motors, sprawling 23 million square feet in Andhra Pradesh has reportedly created 12,000 direct and indirect jobs since its inauguration in December 2019.