Kia India to invest $2 billion in new Andhra Pradesh plant
The investment will increase the automaker's annual production capacity to over 6 lakh units and create 12,000 jobs.
Kia India will invest $2 billion to establish a second manufacturing facility in Andhra Pradesh, according to reports by Telangana Today and India Today. Kia India Managing Director and Chief Executive Officer Gwanggu Lee announced the expansion during the CII Partnership Summit in Visakhapatnam on Thursday.
The new plant is expected to add an annual production capacity of 2 lakh units, bringing the company's total capacity in India to over 6 lakh vehicles. Production at the new facility is planned to begin in early 2030 and will include manufacturing for both internal combustion engine and electric vehicle powertrains.
The project will be developed across 465 acres and is expected to generate approximately 12,000 direct and indirect jobs. Lee stated that the new facility would allow the company to meet demand more effectively and facilitate the launch of new models.
Kia India currently operates a manufacturing plant in Anantapur, which began mass production in 2019 and has an annual capacity of 4.30 lakh units. The company noted that its cumulative investment across both facilities, including those from supplier partners, will reach $5 billion.
The expansion follows recent investment commitments in the state from South Korean auto component firms Hwashin, Seoyon, and Iwamet. These three firms signed agreements to establish facilities in Anantapur, with total investments worth Rs 1,614 crore.