Kia India to Invest USD 2 Billion in Second Manufacturing Plant in Andhra Pradesh

Kia India has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish its second manufacturing facility in the state. The proposed facility will involve a combined investment of USD 2 billion from Kia and its supplier partners.

Spread across 465 acres, the new Anantapur plant will have an annual production capacity of 2 lakh units and is expected to manufacture new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. The facility is expected to generate approximately 12,000 direct and indirect employment opportunities, with production scheduled to begin in early 2030.

The new facility will take Kia India’s combined annual manufacturing capacity across both plants to over 6 lakh units, comprising 4.3 lakh units at the existing Anantapur plant and 2 lakh units at the proposed facility. With this expansion, the company’s cumulative investment across both plants will reach USD 5 billion, including the initial investment of USD 2.9 billion at the existing facility.

Kia’s existing Anantapur plant manufactures models including the Seltos, Syros (ICE and EV), Sonet, Carens (ICE and CNG), Carens Clavis (ICE, EV and CNG), Carnival and Sorento (ICE and HEV).

Commenting on the investment, 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. 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.”

Also read: Kia India launches Syros EV, starting at ₹13.49 lakh