Reportedly Kia Motors opened its first indian plant in andhra pradesh with much fanfare in december 2019. chief minister jagan MOHAN REDDY' target='_blank' title='ys jagan mohan reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW'>ys jagan mohan reddy inaugurated the plant, which Kia began building in 2017. Meanwhile it took two years for the first Kia plant to begin production in andhra pradesh but there are reports now suggesting that the south Korean car major is considering shifting its plant to neighbouring tamilnadu, where its sister concern hyundai has all its units.
Hence despite official denial by Kia Motors, the reports suggest that there is serious possibility of shifting of the manufacturing plant unless urgent intervention is not made from the jagan Mohan government. Apparently Kia plant is the only functional operating industry in andhra pradesh at this point of time. During Chandrababu Naidu's tenure, Kia had been given basic facilities and special incentives to establish the plant in Anantpur.
Moreover Naidu had a strategy to bring in other sub ancillary and industry units after this plant. But as the government changed in 2019, the new government under congress PARTY' target='_blank' title='ysr congress-Latest Updates, Photos, Videos are a click away, CLICK NOW'>ysr congress party chief jagan MOHAN REDDY' target='_blank' title='ys jagan mohan reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW'>ys jagan mohan reddy rolled out a policy that makes it mandatory for the companies to reserve 75 per cent of the jobs for the local youths from Andhra Pradesh. When speaking at the inauguration ceremony, jagan mohan reddy had said, "Kia Motors has done a wonderful job here. This plant, once it is fully commissioned, is capable of generating 11,000 direct jobs and another 7,000 through its ancillary units."
