Kia India to invest $2B in second plant in Andhra Pradesh

Kia India has committed a combined investment of $2 billion, along with its supplier partners, to set up its second manufacturing facility in Andhra Pradesh.

The carmaker signed a memorandum of understanding with the state government to formalise the plan.

The factory will be located in Anantapur, the same district that houses Kia's current plant. It will add 2 lakh units of annual manufacturing capacity, taking Kia India’s combined capacity across both plants to over 6 lakh units a year.

Kia India is targeting early 2030 for production to begin, with the plant carrying out stamping, welding, painting and assembly. This plant will manufacture new models across ICE and EV powertrains, the company said in a statement.

Kia and its suppliers will together occupy 465 acres on the new site. The company expects the facility to support roughly 12,000 jobs, both direct and indirect.

In comparison, the first plant, across 945 acres, employs 24,237 people through direct and indirect roles. Set up with an initial investment of $2.9 billion, the facility builds the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento models, spanning ICE, EV, CNG and hybrid versions.

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."

He continued, "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.

"As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here. This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets.”

Kia said the project would also help build India's manufacturing base, generate employment, and support the wider auto industry.

Feature image: Kia India's first manufacturing facility in Andhra Pradesh