Kia Motors a group company of South Korean auto giant Hyundai, has announced its plans of building an independent facility in Andhra Pradesh, India which will be operational by the end of 2019.

The South Korean automaker has signed a memorandum of understanding (MOU) with the Government of Andhra Pradesh to put up a new manufacturing plant in Anantapur district. The new factory will have an annual capacity of three lakh vehicles.

An investment of $1.1 billion (around Rs 7,050 crore) will set into the plant, which is spread over 536 acres. Production will begin in the second half of 2019, and sales by the end of the same year.

Kia intends to differentiate itself from Hyundai and develop its own identity in India. Kia has also announced two cars slated for production in the new facility, a compact sedan and a compact SUV, which fit perfectly into the changing scenario of the car market in India.