Kia India to invest USD 2 billion in new Andhra Pradesh plant
The new manufacturing facility is expected to create 12,000 jobs and increase the company's total annual production capacity to over 6 lakh units.
Kia India will invest USD 2 billion to establish a second manufacturing facility in Andhra Pradesh, according to reports by India Today, Telangana Today and Deccan Chronicle. The announcement was made by Kia India Managing Director and CEO Gwanggu Lee during the CII Partnership Summit in Visakhapatnam on Thursday.
The proposed plant will be developed across 465 acres and is expected to generate approximately 12,000 direct and indirect jobs. This new unit will add an annual production capacity of 2 lakh units, which will bring the company's total manufacturing capacity in India to over 6 lakh units.
The facility will manufacture new models using both internal combustion engine (ICE) and electric vehicle (EV) powertrains. Operations at the site will include assembly, painting, welding and stamping.
Kia India currently operates an existing plant in Anantapur, Andhra Pradesh, which has an annual capacity of 4.3 lakh units. The company stated that its total investment across both facilities, including those from supplier partners, will reach USD 5 billion.
Gwanggu Lee said the expansion would allow the company to meet demand more effectively and facilitate the launch of new models. He noted that India remains a central part of the company's long-term growth strategy.
While one report states production is planned to begin in early 2030, the CEO did not specify a timeline for when the additional capacity would become operational.