Kia will invest $2 billion in its second Andhra Pradesh plant
NEW DELHI: Kia India, along with its supplier partners, will invest about $2 billion to set up a second manufacturing plant in Anantapur, Andhra Pradesh.
The company announced the expansion on Thursday after signing a memorandum of understanding with the state government at the CII Partnership Summit in Visakhapatnam.
The new facility is expected to begin production in early 2030 and will create around 12,000 direct and indirect jobs. It will add 200,000 units of annual capacity, taking Kia India’s total production capacity across both plants to more than 630,000 vehicles.
Strengthening Manufacturing Footprint
Kia India’s existing plant in Anantapur, which began mass production in August 2019, currently has an annual capacity of 430,000 units.
The second plant, spread across a combined 465 acres that includes space for suppliers, will manufacture both internal combustion engine (ICE) and electric vehicle (EV) models.
With this investment, Kia’s cumulative outlay across its two Indian facilities, including supplier investments, will rise to approximately $5 billion.
Gwanggu Lee, Managing Director and CEO of Kia India, said: “India is central to Kia’s long-term growth ambitions, and the trust our customers have placed in us since we began operations in Anantapur has been instrumental in our journey. Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains.”
He added that the expansion would further strengthen the company’s Made-in-India footprint and its ability to serve both domestic and overseas markets.
Growing Investments in India
The announcement comes at a time when several global automakers are increasing their manufacturing presence in India, the world’s third-largest car market.
Companies such as Suzuki, Toyota and Honda have also announced major capacity expansion plans in recent years to cater to rising domestic demand and export opportunities.
Kia’s first Anantapur plant has been central to its India strategy, producing popular models including the Seltos and Sonet for the domestic market as well as exports.
In financial year 2026, the company produced 3.17 lakh units, of which nearly 2.89 lakh were sold in India and about 28,000 were exported.
Boost to Andhra Pradesh’s Auto Ecosystem
The new plant is expected to deepen the auto-component and supplier ecosystem in the Anantapur region. Earlier this month, three South Korean auto-component firms supplying to Hyundai and Kia committed investments worth ₹1,614 crore in the same district, with the potential to create over 1,400 jobs.
The second Kia facility, together with the supplier investments, is likely to reinforce Andhra Pradesh’s position as an emerging automobile manufacturing hub in southern India.
Once operational in early 2030, the new plant is expected to give the company greater flexibility to introduce additional models, meet rising demand, and increase exports while contributing to local employment and industrial development.
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