Kia India to invest $2 billion in Andhra Pradesh plant
The new manufacturing facility 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. According to The Times of India, the announcement was made during the inaugural session of the 31st CII Partnership Summit in Visakhapatnam.
The proposed facility is expected to generate about 12,000 jobs. It will also raise the company's annual production capacity from 4.3 lakh to 6.3 lakh vehicles.
Lee noted that the company's existing Andhra Pradesh plant, which started in 2017, has an annual capacity of 4.3 lakh vehicles. He stated that this facility has served as a major centre for exports, with more than 4.1 lakh vehicles and kits sent to almost 100 countries.
The CEO highlighted that Kia India reached production milestones of 1 million vehicles in four years and 2 million vehicles in seven years. He described the company as the fastest original equipment manufacturer (OEM) to achieve these figures.
Lee praised Chief Minister N Chandrababu Naidu for his dedication to industrial growth and for creating an environment that supports investors. He said the company's work in the state includes supply-chain development and corporate social responsibility initiatives in healthcare, education, and skill development.
The company intends to strengthen its partnership with the state government to support Andhra Pradesh's goal of becoming a global hub for innovation and manufacturing.