Kia India to invest USD 2 billion in second Andhra Pradesh plant, production to begin in 2030
Kia India has announced a USD 2 billion investment, along with its supplier partners, to set up its second manufacturing facility in Andhra Pradesh. The new plant will add an annual production capacity of 2 lakh units, taking the company's combined manufacturing capacity in India to over 6 lakh units.
The announcement follows the signing of a Memorandum of Understanding (MoU) between Kia India and the Government of Andhra Pradesh. The proposed facility will be developed across 465 acres, including land for Kia and its supplier partners, and is expected to generate approximately 12,000 direct and indirect job opportunities.
According to the company, production at the second facility is planned to begin in early 2030. The plant will manufacture new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. Its manufacturing operations will include stamping, welding, painting and assembly.Kia's manufacturing capacity to cross 6 lakh units
Kia India's existing manufacturing facility is located in Anantapur, Andhra Pradesh, where it has an annual production capacity of 4.3 lakh units. The plant currently manufactures models including the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento, with different powertrain options.
With the addition of the second plant's 2 lakh-unit capacity, Kia's total installed manufacturing capacity in India will exceed 6 lakh units annually. The company said its cumulative investment across both facilities, including supplier investments, will reach USD 5 billion.
The existing Anantapur facility spans 945 acres and has a workforce of 24,237 direct and indirect employees. The proposed second facility will expand Kia's manufacturing footprint in the state and add to its employment base.New plant to support ICE and electric vehicle production
Kia India said the second facility will improve its ability to respond to customer demand and provide greater flexibility for introducing new models. The plant will support production across both ICE and EV powertrains, with the company also looking to strengthen its manufacturing capabilities for domestic and overseas markets.
Commenting on the investment, Gwanggu Lee, Managing Director and CEO of Kia India, said the new facility would help the company respond to demand more efficiently and support the introduction of new models across different powertrains.
He added that India remains central to Kia's long-term growth plans, with the second plant further expanding its Made-in-India manufacturing footprint.
The investment marks an expansion of Kia's existing manufacturing operations in India, with the company looking to increase production capacity and strengthen its presence in the country's automotive market.
