Kia India to Invest $2 Billion in Andhra Pradesh Plant

Kia India announces a $2 billion investment in a second Anantapur manufacturing facility, adding 200,000 vehicles to annual capacity and creating around 12,000 direct and indirect jobs.

South Korean automobile manufacturer Kia India has announced an investment of approximately $2 billion to establish its second manufacturing facility in Andhra Pradesh, expanding its production capacity and strengthening its presence in the Indian automotive market. The proposed facility is expected to add 200,000 vehicles to the company's annual manufacturing capacity and generate around 12,000 direct and indirect employment opportunities.

The announcement was made by Gwanggu Lee, Managing Director and CEO of Kia India, at the 31st Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam on November 12, 2026. The company has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to formalise the proposed investment and manufacturing expansion.

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The new facility will be established in Anantapur district, where Kia already operates its existing manufacturing plant. The proposed development will cover approximately 465 acres, including land allocated for supplier operations. The additional manufacturing capacity will increase Kia India's annual production capability from 430,000 to approximately 630,000 vehicles.

The upcoming facility will manufacture vehicles powered by internal combustion engines as well as electric powertrains. The expansion is expected to provide the company with greater production flexibility and support the introduction of new models across different vehicle segments. It will also strengthen Kia's ability to serve domestic customers and expand exports to international markets.

Kia's existing Anantapur manufacturing facility began mass production in August 2019 and currently produces models including the Seltos and Sonet. The plant has an annual production capacity of 430,000 vehicles and serves as an important export base for the automaker. The company has exported more than 410,000 vehicles and vehicle kits to nearly 100 countries through its Indian operations.

With the proposed expansion, Kia's cumulative investment across its two Indian manufacturing facilities, including supplier investments, is expected to reach approximately $5 billion. The project will also strengthen the local automotive supply chain by creating opportunities for component manufacturers, logistics providers and other industrial partners.

Gwanggu Lee said the additional manufacturing facility would help the company respond to customer demand more efficiently while supporting the introduction of new models across internal combustion engine and electric vehicle platforms. He also reiterated Kia's commitment to expanding its Made-in-India manufacturing footprint and serving both domestic and overseas markets.

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The investment reflects Kia's long-term growth strategy in India, one of the world's largest automobile markets. It also supports Andhra Pradesh's efforts to attract international manufacturers, expand industrial infrastructure and generate employment through large-scale manufacturing investments.