Please check that you have enough internal storage, first time app will be installed there, after that you can go in Application manager and move app to your SD-Card
To avoid this error you must have free space on internal storage, below is the way how GooglePlay install app.
you find some app on google-play-store and decide to install it
after you’ve clicked “install” and agreed on terms/permissions, the apk is downloaded to /data/local, i.e. to your internal-storage. You can’t change that.
when the download is completed, the .apk will be installed automatically. Where to, depends on multiple things:
if the dev did not specify the android:installLocation property in his apps Manifest, the app will be installed to internal story. Full stop, no other choice (see: API reference).
if this android:installLocation is set to preferExternal, and external storage is available, it will go there.
if it’s set to auto, it again depends:
does the app contain widgets, services, wants to start at boot, and several other things, it goes to internal storage. Full stop, no other choice.
it goes where the devices “default install location” points to