Home >Companies >News >Kia denies report on plan to move plant in Andhra to TN

NEW DELHI : Kia Motors Corp. on Thursday denied a media report that it is considering a relocation of its factory in Andhra Pradesh to Tamil Nadu due to various policy changes.

“The news of Kia Motors evaluating to move out of Andhra Pradesh is baseless," said Kia Motors India on Thursday.

Reuters reported on Wednesday that said Kia, which opened its first factory in India at Anantapur district in Andhra Pradesh in December, was facing problems due to policy changes by the state government. It cited an unnamed official as saying that a secretary-level meeting of the Tamil Nadu government is due to take place next week, after which there would be more clarity on the issue. The Andhra government too denied reports of Kia shifting from the state. “News report of Kia Motors shifting from Andhra Pradesh is not true. Kia and the state government are working together," said Rajath Bhargava, special chief secretary, industries, investments and commerce, Andhra Pradesh.

The Tamil Nadu government’s principal secretary of industries has also said in a statement “that they are not in talks with Kia Motors and that there were no discussions between the two parties in this regard."

According to the Andhra government website, it offers various incentives such as power cost reimbursement, sales tax and capital subsidy incentive to all eligible new and existing industrial enterprises in the state, along with the promise of a hassle free and seamless incentive application and tracking process.

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