Kia India to invest $2 billion in Andhra Pradesh plant
The proposed manufacturing facility is expected to create 12,000 jobs and increase annual production capacity to 6.3 lakh vehicles.
Kia India plans to invest approximately $2 billion (around Rs 17,000 crore) to set up an additional manufacturing plant in Andhra Pradesh, according to reports by ANI and Firstpost. Kia India Managing Director and CEO Gwanggu Lee announced the proposal on Thursday during the 31st Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam.
The new facility is expected to raise the company's annual production capacity from the current 4.3 lakh units to 6.3 lakh vehicles. This expansion is projected to generate roughly 12,000 jobs. While the investment was announced, the company has not yet shared when the plant will be built or when production will start.
Lee stated that the project would expand operations in the state and reinforce the company's long-term commitment to the Indian market. He noted that the existing Andhra Pradesh facility has already contributed to the state's automotive ecosystem and serves as a major export hub, having sent over 4.1 lakh vehicles and kits to nearly 100 countries.
Kia has maintained a presence in Andhra Pradesh since 2017, with mass production beginning at its Anantapur facility in August 2019. The company has previously reached production milestones of 1 million vehicles in four years and 2 million vehicles in seven years.
The investment comes as several global automakers, including Hyundai Motor Group and Suzuki Motor, have announced significant investment plans in India to meet rising domestic demand and expand export operations.