Kia Motors has announced that it will be setting up a manufacturing plant in India, its first in the country. Construction of the new facility, which will be located in Anantapur district, Andhra Pradesh, will commence in the final quarter of 2017.

Built with a US$1.1 billion investment, the new plant is expected to begin production in the second half of 2019 and assemble up to approximately 300,000 units each year. Local sales of cars produced at the new facility will commence towards the end of 2019, once mass production begins.

The automaker plans to produce a strategic compact sedan and compact SUV for the Indian market at the new factory, which will occupy around 23 million sq ft and incorporate facilities for stamping, welding, painting and assembly. The site will also be home to numerous supplier companies’ facilities.

No surprises as to Kia’s move to set up a manufacturing base in India. The country is the fastest growing major new car market and the fifth largest in the world, with more than 3.3 million new cars sold in 2016. Forecasts suggest the country will become the third-largest car market globally by the end of 2020.