Kia India to invest USD 2 billion in Andhra Pradesh plant
The new manufacturing facility in Anantapur is expected to create 12,000 jobs and increase total annual production capacity.
Kia India and its supplier partners will invest USD 2 billion to establish a second manufacturing facility in Andhra Pradesh, according to reports by India Today, The New Indian Express and The Pioneer. The company has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to support this expansion.
The proposed plant, located in Anantapur, will span 465 acres for the automaker and its suppliers. It is expected to add an annual production capacity of 2 lakh units, which will bring the company's total combined manufacturing capacity in India to over 6 lakh units.
The new facility will manufacture models using both internal combustion engine (ICE) and electric vehicle (EV) powertrains. Operations at the site will include assembly, painting, welding and stamping. The project is expected to generate approximately 12,000 direct and indirect job opportunities.
Kia India Managing Director and CEO Gwanggu Lee said the expansion would help the company respond to demand with more flexibility and support the introduction of new models. Lee noted that India remains central to the company's long-term growth plans.
The company's existing Anantapur facility has an annual capacity of 4.3 lakh units. Including supplier investments, the total capital committed across both plants is expected to reach USD 5 billion. Production at the second facility is planned to begin in early 2030.