Kia India To Invest USD 2 Billion In New Andhra Pradesh Plant For ICE, Electric Cars

Kia India is preparing for its next big expansion in the country. The South Korean carmaker has signed an agreement with the Andhra Pradesh government to build a second manufacturing plant in Anantapur, with a combined investment of USD 2 billion, roughly Rs 18,750 crore, from Kia and its supplier partners.

The new facility is expected to begin production in early 2030 and will add 2 lakh vehicles to Kia's annual capacity. Once operational, the company's total production capability will rise to 6.3 lakh vehicles a year, up from the current 4.3 lakh units.

Anantapur Plant

The proposed plant will come up on 465 acres, alongside facilities planned for component suppliers. It will handle vehicle stamping, welding, painting, and final assembly, and will cater to both domestic sales and overseas shipments.

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The project is expected to create around 12,000 direct and indirect jobs in Andhra Pradesh. Kia's existing Anantapur complex, which began operations in 2019, already supports 24,237 direct and indirect jobs across 945 acres.

Kia's India Portfolio

Kia currently produces the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento at its existing facility. The line-up spans petrol, diesel, CNG, hybrid and electric powertrains, depending on the model. The second plant will give Kia more room to expand both its ICE and EV portfolios. The company has not yet announced which specific models will be built at the new facility.

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Kia India CEO's Statement

Commenting on the development, Gwanggu Lee, Managing Director and CEO, 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."

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Outlook For Indian Market

With the second plant, Kia's cumulative investment in India will touch nearly USD 5 billion, with the two manufacturing complexes and their supplier facilities occupying a combined 1,410 acres.