Kia India to invest $2 billion in new Andhra Pradesh factory
The South Korean carmaker and its suppliers plan to add 2 lakh units of annual manufacturing capacity by early 2030.
Kia India and its auto component suppliers will invest $2 billion or Rs 18,700 crore to establish a second manufacturing facility in Anantapur, Andhra Pradesh, according to reports by Deccan Chronicle, India Today and The New Indian Express.
The company has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to support the expansion. The new plant, which is expected to begin production in early 2030, will add 2 lakh units of annual capacity, bringing the total combined capacity of both plants to 6.30 lakh units.
The proposed facility will span 465 acres for Kia and its suppliers and is expected to create approximately 12,000 direct and indirect jobs. Operations at the site will include assembly, painting, welding and stamping to produce vehicles using both electric and internal combustion engine technology.
Kia India Managing Director and CEO Gwanggu Lee said the second plant marks a significant new chapter that will allow the company to respond to customer demand with more flexibility and support new model introductions.
The expansion comes as the manufacturer of the Seltos and Sonet SUVs operates at near full capacity. Between January and October 2026, the automaker dispatched 2,86,470 units, a 21 per cent year-on-year increase that surpassed its total 2025 sales in 10 months.
Kia has previously invested approximately $2.9 billion in its existing Anantapur facility, which has an annual production capacity of 4.3 lakh units. The cumulative investment across both plants, including suppliers, is expected to reach $5 billion.