Kia India Announces $2 Billion Investment in New Andhra Pradesh Plant
South Korean automaker Kia plans to invest approximately $2 billion to establish its second manufacturing facility in India, with production expected to begin in early 2030. The proposed plant will be located in Anantapur, Andhra Pradesh, and the investment will be made alongside the company’s suppliers. According to Kia, the project is expected to generate around 12,000 direct and indirect jobs following an agreement with the state government.
The new facility will cover approximately 465 acres and manufacture vehicles powered by both internal combustion engines and electric motors. It is expected to add 200,000 vehicles to Kia India’s existing annual production capacity of 430,000 units. The expansion will also take the company’s combined investments across its two Indian facilities, including supplier investments, to approximately $5 billion. Kia India CEO Gwanggu Lee said the expansion would strengthen the company’s long-term growth plans and support the introduction of new models for domestic and international markets.
The investment comes as global automobile manufacturers increasingly expand their operations in India, the world’s third-largest car market, to benefit from growing vehicle demand and manufacturing opportunities. Kia began production at its existing Anantapur facility in August 2019, manufacturing popular models such as the Seltos and Sonet for Indian and export markets. Other automakers, including Suzuki, Toyota and Honda, have also announced major investment plans to strengthen their presence in the country.
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