Kia Motors
Kia Motors to increase production by 400,000 units by 2022: Report
Mumbai: South Korean carmaker Kia Motors will increase its production in India by the end of 2022, media reports said.
The company will ramp up production by a third to 400,000 units by the end of this year as backorder in India is increasing despite efforts to maximise orders, Economic Times reported.
The growth in demand can be noted in the order book figures that jumped from 82,000 units in December 2021 to 127,000 units in March, 2022 led by the newly launched Carens MPV.
The company recently launched the new EV6. "The enhancement in capacity will happen at the existing site by the end of this year,” Tae-Jin Park, managing director of Kia India, told ET.
He also spoke about the disruption in semiconductor supply in the country.
“The semiconductor situation is a nightmare. We do not know which chip will be or not be available. Logistics is a challenge. We monitor our production plan almost on a daily basis and make adjustments,” he said.
The Seoul-headquartered company is hoping that the semiconductor supplies will improve and help in growing sales in India by nearly a third in 2022.
The company manufactured more than 227,000 vehicles at Anantapur, equivalent to 8 percent of its global production.
It is looking to produce 300,000-350,000 vehicles in CY2022, including exports, taking the Indian unit’s contribution to 10 percent.
He said Kia India will look at enhancing profitability on the back of sustained demands.
The company is also witnessing strong demand in the exports market.
The company is looking to boost capacity at its Anantapur manufacturing hub to 400,000 units with efficiency improvement in order to cater to higher demand.
The firm will export about 80,000 units of the planned production in India for 2022, as per its global presentation, said the ET report.
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