Kia Motors is planning to enter the Indian car market and supply it from a new car plant in India, according to media reports in India.

The Times of India said that the Hyundai Motor owned brand has begun preliminary work to identify possible sites for a manufacturing facility in India. An anonymous source also told the newspaper that the Kia plant could manufacture Hyundai models, too, because Hyundai's Indian plant near Chennai is operating close to its capacity limits.

Reports say that Kia is placing some priority on a strategy for India, a market that is now growing again after a slowdown linked to India's lacklustre economic performance.

The Times of India report added that it may take 2-3 years before Kia is able to start selling locally made cars in India.

The Indian car market is seen by many analysts as one of considerable potential given the country's 1.2bn population and an appetite for motorisation, especially as two-wheeler owners trade up to cars as average incomes rise. The light vehicle market of India is around 3m units a year, which compares with well over 20m in China, although the two emerging markets have similar sized populations.