Kia India to invest $2 billion in new Andhra Pradesh plant

New Delhi: Kia India on Thursday announced an investment of $2 billion to set up a new manufacturing facility in Andhra Pradesh, increasing the South Korean automaker's annual production capacity to more than 6 lakh units.

Gwanggu Lee, MD and CEO, Kia India, said, "I am so delighted to announce the expansion of Kia's presence in Andhra Pradesh through the establishment of an additional manufacturing plant."

The project is expected to create around 12,000 jobs and increase Kia India's annual production capacity to 630,000 vehicles.

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Kia India already has a manufacturing facility in Anantapur in the state that it set up in 2017. It has an annual manufacturing capacity of 4.30 lakh units.

However, Lee did not specify any timeline for the investment or by when the additional capacity would become operational.

In financial year 2026, the automaker produced 3.17 lakh units, dispatching 2.89 lakh units in the domestic market and exporting 27,953 units.

The announcement marks a significant expansion of Kia's manufacturing footprint in India and underlines Andhra Pradesh's growing importance in the country's automobile ecosystem.

The Anantapur plant, which began operations in 2019, has been central to Kia's India strategy, producing models for both domestic sales and exports.

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The fresh investment is expected to further strengthen the supply chain in the region and support ancillary industries, including auto components, logistics and skilled manpower development.

The move also comes close on the heels of fresh investment commitments from South Korean auto component suppliers in Andhra Pradesh.

Earlier in November, Andhra Pradesh secured investment commitments worth Rs 1,614 crore from three auto component firms supplying to South Korean majors Hyundai and Kia, providing a boost to its manufacturing base, as per reports.

Three firms -- Hwashin, Seoyon and Iwamet -- signed agreements with the Andhra Pradesh government to establish manufacturing facilities in Anantapur district.

The proposed projects are expected to generate around 1,400 jobs and strengthen Anantapur's position as an emerging automobile and auto-components production hub.

Among the three companies, one has committed an investment of Rs 850 crore, while another plans to invest Rs 514 crore and the third Rs 250 crore. Collectively, the projects are expected to create about 1,418 employment opportunities.

The investment commitments followed a visit by Andhra Pradesh Minister for IT, Electronics and Human Resource Development Nara Lokesh to South Korea in July, where he held discussions with companies linked to Hyundai and Kia's global supply chain.