India: Korean carmaker Kia Motors Thursday said production of its made-in-India cars would begin in the second half of 2019. Once the construction of its unit in Penukonda in Anantapuramu district of Andhra Pradesh is over, the company would produce approximately three lakh cars annually. The company handed over its best-selling electric cars Niro Hybrid, Niro Plug-in Hybrid and Niro EV to the Andhra Pradesh government.
Kia Motors India is on track with its Greenfield facility in India. The Indian arm of the Korean carmaker is looking, to begin with, setting up the “most extensive” dealer network for a new entrant in the Indian market.
The company is investing USD 1.1 billion (INR 7,005 crore) in the Indian market. Its new plant at the Anantapur district of Andhra Pradesh has a capacity of 3,00,000 units per annum. The manufacturer says that the plant structure has been erected and is now in the process of installing equipment to begin operations. During the first phase, 90 percent of vehicles produced will be slated for the domestic market while 10 percent will be for export.
The company says that it is studying the Indian market and will select products from the expansive Kia portfolio so as to launch models most relevant to the Indian market. It aims to introduce one new model every six months and aim to reach full capacity utilization within three years from launch. The annual capacity at the plant is being initially considered only for domestic sales in India.
According to BlueWeave Consulting, India automotive industry is at the flourishing stage, supportive government policies and high public & private sector investment in the region are booming the industry. Over the years the automotive industry will witness phenomenal growth with high investment from foreign investment companies. Increase in per capita income and rise in urban population has surged the demand for automobiles leading to higher revenue generation in the region. Prominent automotive companies are willing to enter into the market through acquisition and partnership, further government supportive policy is positively impacting the market. Companies are focusing on controlling cost, improving efficiency and utilization of alternative energy engines. Electric vehicles (EVs) are the most fuel-efficient reduces emissions and significantly lower energy costs, thus EVs are on high demand, which in turn will promulgate the market growth of EV batteries and charging stations as well in near future.
According to the report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market, By Propulsion, By Vehicle Type, By Component Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2024”, the global electric commercial vehicle is projected to grow over a CAGR of 12% during the forecast period of 2018-2024 by value. The market is expected to reach around USD 149,316 Million by 2024. The demand for electric vehicles and charging station is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several countries and growth of public charging infrastructure in China, India, and the other developed countries are fuelling the market growth.
According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the growth is attributed to an increased deployment of charging stations at public places such as shopping malls, commercial buildings, airports, and restaurants. The convenience of being able to use an EV charger while shopping or during office hours is expected to boost the adoption of electric vehicles. Furthermore, government offerings, such as tax credits, on the installation of publicly accessible stations are expected to boost the market.
According to the report by BlueWeave Consulting on “Global Electric vehicle Battery Market, By Battery Type, By Vehicle Technology, By Vehicle Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the global electric vehicle battery is projected to grow over a CAGR of 19.04% during the forecast period. The growing demand for Electric Vehicles (EVs) is primarily responsible for the aggressive growth of EV batteries. The sales of electric vehicles have increased due to the increasing government support in the form of tax credits and lucrative subsidies and consumer awareness of the usage and benefits of these vehicles. Moreover, huge investments by major players to set up EV battery plants are expected to further drive the market.