Kia India to invest $2 billion in new Andhra Pradesh plant
The investment will increase the automaker's annual production capacity to more than 6 lakh units and create 12,000 jobs.
Kia India will invest $2 billion to establish a new manufacturing facility in Andhra Pradesh, according to Telangana Today. Kia India Managing Director and Chief Executive Officer (CEO) Gwanggu Lee announced the expansion on Thursday during the CII Partnership Summit in Visakhapatnam.
The new plant is expected to create approximately 12,000 direct and indirect jobs. This facility will add 2 lakh units of annual manufacturing capacity, bringing the company's combined capacity across both plants to 630,000 vehicles.
The automaker already operates a manufacturing facility in Anantapur, which began operations in 2019 and has an annual capacity of 4.30 lakh units. Lee did not specify a timeline for the investment or when the additional capacity would become operational.
Lee stated that the second plant marks a significant new chapter that will strengthen the company's ability to respond to customer demand and support the introduction of new models across ICE and EV powertrains. He added that the move will expand the company's Made-in-India footprint to serve domestic and overseas markets.
In financial year 2026, the automaker produced 3.17 lakh units, with 2.89 lakh units dispatched to the domestic market and 27,953 units exported. The company is a subsidiary of South Korea’s Hyundai Motor Group.