Kia India to invest $2 billion in new Andhra Pradesh plant
The investment aims to increase the automaker's annual production capacity to 6.3 lakh vehicles and create 12,000 jobs.
Kia India Managing Director and CEO Gwanggu Lee announced on Thursday an investment of approximately $2 billion, or around Rs 17,000 crore, to set up an additional manufacturing facility in Andhra Pradesh. According to ANI and Telangana Today, the announcement was made during the 31st CII Partnership Summit in Visakhapatnam.
The new project is expected to raise the company's annual production capacity from 4.3 lakh units to 6.3 lakh vehicles. Lee stated that the expansion is intended to grow the company's operations in the state and reinforce its long-term commitment to the Indian market.
The proposed plant is projected to generate around 12,000 jobs. Lee noted that the company's existing facility in the state has already contributed to the local automotive ecosystem and provided significant employment opportunities.
Kia India's presence in Andhra Pradesh began in 2017, with its first plant commissioned in 14 months. The existing facility has served as an export hub, with more than 4.1 lakh vehicles and kits sent to nearly 100 countries.
Lee mentioned that the company reached the 1 million vehicle mark in four years and 2 million vehicles in seven years, calling it the fastest original equipment manufacturer to hit those targets. He did not provide a specific timeline for when the new capacity would be operational.