KIA Motors To Invest $54 million More In AP

TADEPALLI: In a significant development amplifying its investor keenness, KIA Motors Inc on Thursday pledged to make additional investments in Andhra Pradesh. Kookhyun Shim, Chief Executive Officer of the multi-national automobile company, himself made this announcement in the presence of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy while taking part in the ‘Maa Paalana-Mee Suchana’ (Our Governance-Your Suggestion), a series of brain-storming conferences being organized by the state government here.

Speaking on the occasion, Kookhyun Shim announced that his company would invest an additional $54 million (nearly Rs 410 crores) in Andhra Pradesh for the manufacture of KIA brand of Sport Utility Vehicles (SUVs). The Thursday’s session of the brain-storming conferences was dedicated to deliberations on the industrial sector. The KIA top honcho reaffirmed his company’s affinity to Andhra Pradesh saying that KIA has forged a strong bond with the state government.

In an observation that would be a shot in the arm for other investors, he said that Andhra Pradesh boasts of many natural advantages for the setting up of industries. Stating that the state is also rich in natural resources, he complimented the state government for forging ahead in its governance with great accountability.

The KIA CEO’s latest statement announcing additional investments and speaking positively of the state government assumes greater significance in the wake of recent campaigns by some opposition political parties in the state. Right from TDP chief Chandrababu Naidu, many of his party leaders and some of the state BJP leaders had earlier vehemently tried to project an adverse picture in this regard. Accusing the state government of not adopting an investor-friendly approach, they tried to propagate falsehood claiming that the multinational automobile company has developed cold feet due to this.

But the head honcho of KIA himself praising the state government in unequivocal terms and pledging additional investment in the state flies right in the face of the government’s political adversaries in the state.

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