Kia India to invest USD 2 billion in Andhra Pradesh plant
The new manufacturing facility is expected to create 12,000 jobs and increase total annual production capacity to over 6 lakh units.
Kia India, along with its supplier partners, will invest USD 2 billion to establish a second manufacturing facility in Andhra Pradesh, according to India Today. The company signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh for the project.
The proposed plant will span 465 acres and is expected to generate approximately 12,000 direct and indirect jobs. Production at the new site is planned to begin in early 2030, according to the company.
The facility will manufacture models using both internal combustion engine (ICE) and electric vehicle (EV) powertrains. Operations will include assembly, painting, welding, and stamping to serve domestic and international markets.
This expansion will increase the automaker's total annual production capacity in India to over 6 lakh units. The company's existing plant in Anantapur currently has an annual capacity of 4.3 lakh units.
Kia India Managing Director and CEO Gwanggu Lee said the expansion would allow the company to meet demand more effectively and facilitate the launch of various new models. He noted that India is vital to the long-term growth strategy of the company.
The cumulative investment for both facilities, including those from suppliers, is expected to reach USD 5 billion.