Kia India to invest $2 billion in new Andhra Pradesh plant
The investment is expected to create 12,000 jobs and increase annual production capacity to 6.3 lakh vehicles.
Kia India Managing Director and CEO Gwanggu Lee announced on Thursday an investment of approximately USD 2 billion, or around Rs 17,000 crore, to build an additional manufacturing plant in Andhra Pradesh. The announcement was made during the 31st Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam, according to ANI and The Tribune.
The new facility is intended to raise the company's annual production capacity from 4.3 lakh vehicles to 6.3 lakh vehicles. This expansion is expected to generate roughly 12,000 jobs. While the investment was confirmed, the company has not provided a timeline for when the plant will be set up or when production will begin, Firstpost reported.
Lee stated that the project would expand manufacturing operations in the state and reinforce the company's long-term commitment to the Indian market. He noted that the existing Andhra Pradesh facility, which has a capacity of 4.3 lakh vehicles, has supported the state's automotive ecosystem.
Kia's presence in the state began in 2017, with mass production starting at the Anantapur facility in August 2019. The current plant serves as an export hub, having sent over 4.1 lakh vehicles and kits to almost 100 different countries.
Lee added that Kia India reached production milestones of 1 million vehicles in four years and 2 million vehicles in seven years. He also mentioned the company's involvement in supply-chain development and social responsibility initiatives in healthcare, education, and skill development.