Two days after a controversy engulfed the KIA Motors production plant in Andhra Pradesh, the company on Friday, 7 February, put out an official statement clarifying its stand. The statement said that the reports about shifting the KIA manufacturing facility out of Andhra Pradesh are untrue.
On Wednesday, Reuters had reported that KIA Motors was planning to shift its $1 billion plant from Andhra’s Anantapur to Tamil Nadu. The report kicked up a controversy, as the YSRCP government in Andhra had begun to earn a reputation for driving away investments and projects from the state.
The statement from KIA further read, “We are receiving full support from the State Government of Andhra Pradesh… KIA has a long term commitment to India market and has made an investment of $1.1 billion in the manufacturing plant at Anantapur.”