South Korea's Hyundai Motor posted a 21 per cent fall in quarterly net profit, dragged down by a United States recall and sales declines in China stemming from political tensions.
More than three million passenger vehicles were sold in India in the financial year ended March 31, almost 10% more than the previous year, according to the Society of Indian Automobile Manufacturers.
Hyundai Motor Co. says its first-quarter profit fell 21 percent from a year earlier. The company will invest this money in building a manufacturing facility in Anantapur, Andhra Pradesh.
Kia will produce strategic compact sedan and compact SUVs, especially for the Indian market at the new plant. "The site will also be home to numerous supplier companies' facilities", said a company statement.
Kia Motors, a subsidiary of Hyundai Motor, is set to sign a memorandum of understanding with the Andhra Pradesh government on Thursday to build a manufacturing facility in the southern state, people in the know of the matter said. Although Kia was once one of the most popular brands in China - with its K3 model the 12th best-selling vehicle there - its sales began falling in March, the company said. The new factory will increase the portion of Kia's overseas production to almost 60 percent from 55 percent. "This is our latest step towards becoming a leading global vehicle manufacturer".
GOP budget hawks open to Trump tax plan despite deficit
That means Democrats would have to support it, and Republicans and Democrats have major differences when it comes to tax reform. Even a slight change to the corporate tax rate would have massive impacts for the economy and the federal budget deficit.
The world's fifth-biggest automaker together with affiliate Kia Motors reported on Wednesday a first-quarter net profit of 1.33 trillion won (S$1.64 billion).
SAIC, biggest vehicle maker in China, and France's PSA are also preparing for an India entry. Furthermore, the region's fast-developing supply chain network and skilled labor force were other key reasons for the new investment by Kia Motors. Maruti Suzuki India Ltd., the Indian arm of Suzuki Motor Corp. dominates the market, which now contributes nearly half of Suzuki's global sales.
The demand for automobiles in India is expected to reach 4.83 million units by 2020, making it the world's third-biggest auto market, the company said. Kia has over 51,000 employees worldwide and an annual revenues of $45 billion.
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