New Delhi: Kia India has announced a USD 2 billion investment, alongside its supplier partners, to establish its second manufacturing facility in Andhra Pradesh. The new plant will introduce an annual production capacity of 2 lakh units, elevating the company's total combined manufacturing capacity in India to more than 6 lakh units.
This development follows the formal signing of a Memorandum of Understanding between Kia India and the Government of Andhra Pradesh. The upcoming facility will occupy 465 acres, encompassing space for both Kia and its supplier network, and is projected to create roughly 12,000 direct and indirect employment opportunities.
Company officials stated that commercial production at the new plant is scheduled to commence in early 2030. The factory will build upcoming models utilizing both internal combustion engine and electric vehicle powertrains, featuring comprehensive manufacturing operations such as stamping, welding, painting, and final assembly.
Kia India currently operates its primary manufacturing plant in Anantapur, Andhra Pradesh, which boasts an annual production capacity of 4.3 lakh units. That existing facility builds a range of popular models including the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival, and Sorento across various powertrain configurations. With the 2 lakh-unit addition from the second facility, Kia's overall installed capacity in the country will surpass 6 lakh units each year. The firm noted that its cumulative investments across both sites, inclusive of supplier contributions, will scale up to USD 5 billion.
The current Anantapur manufacturing site covers 945 acres and currently supports a workforce of 24,237 direct and indirect personnel. The establishment of the second plant will further broaden Kia's footprint within the state and bolster its overall employment footprint.
According to the automaker, the second plant will enhance its operational agility to meet evolving consumer demand and offer increased flexibility for rolling out fresh vehicle models. The site is designed to accommodate multi-powertrain manufacturing, reinforcing the company's export and domestic market strategies.
Gwanggu Lee, Managing Director and Chief Executive Officer of Kia India, remarked that the new facility will empower the company to service market demand more effectively while facilitating the introduction of diverse vehicle models. He emphasized that India continues to play a pivotal role in Kia's long-term global expansion strategy, with the second plant solidifying the brand's Make-in-India manufacturing presence.