Kia India to invest $2 billion in new Andhra Pradesh plant
The investment is expected to create 12,000 jobs and increase the automaker's annual production capacity to 630,000 vehicles.
Kia India plans to invest approximately $2 billion to establish an additional manufacturing plant in Andhra Pradesh, according to reports by Firstpost, Telangana Today and Business Today. Kia India Managing Director and CEO Gwanggu Lee announced the proposed investment on Thursday at the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam.
The new facility is expected to increase the company's annual production capacity to 630,000 vehicles from the existing 430,000 units. This expansion would add 2 lakh units of annual capacity, taking the combined capacity across both plants to over 6 lakh units. The project is expected to generate approximately 12,000 direct and indirect job opportunities.
Lee stated that the second manufacturing 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.
Kia has had a manufacturing presence in Andhra Pradesh since 2019, with its Anantapur facility beginning mass production in August 2019. The company has not disclosed a timeline for setting up the new plant or when production will commence.
The announcement follows a statement from parent company Hyundai Motor Group that it will invest $15.5 billion in India between 2026 and 2032 to expand manufacturing and research and development.