Kia India Announces USD 2 Billion Investment in Second Andhra Pradesh Plant; Capacity to Exceed 6 Lakh Units

New Delhi, India, November 12, 2026: Kia India has announced a combined investment of USD 2 billion by the company and its supplier partners to establish its second manufacturing facility in Andhra Pradesh. The announcement follows the signing of a Memorandum of Understanding (MoU) with the Andhra Pradesh Government, marking a significant expansion of the South Korean automaker’s manufacturing footprint in India.

The proposed facility will be spread across 465 acres, including land allocated for Kia and its supplier partners. It is expected to generate approximately 12,000 additional direct and indirect employment opportunities while adding 2 lakh units of annual production capacity.

With the second plant becoming operational, Kia India’s total manufacturing capacity across its two facilities will exceed 6 lakh units annually. The new investment will also take the company’s cumulative investment in its two Indian manufacturing plants to approximately USD 4.9 billion, including the initial USD 2.9 billion investment in its existing facility.

Second Kia manufacturing plant targeted for 2030

Located in Anantapur, Andhra Pradesh, the proposed second facility is expected to commence production in early 2030. It will feature manufacturing processes covering stamping, welding, painting and assembly, similar to the company’s existing manufacturing operations.

Kia’s current Anantapur facility has an annual production capacity of 4.3 lakh vehicles and employs 24,237 people directly and indirectly. The plant currently manufactures several models for domestic and international markets, including the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento.

The upcoming facility will support the introduction of new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. The additional capacity is expected to provide Kia with greater production flexibility, helping it respond to growing customer demand while strengthening its export capabilities.

Kia strengthens its long-term commitment to India

Commenting on the investment, Gwanggu Lee, Managing Director and CEO, Kia India, said India remains central to the company’s long-term growth ambitions. He credited the trust of Indian customers since Kia began operations in Anantapur for playing an important role in its journey.

Lee added that the second manufacturing plant would mark a new chapter for the company, enabling it to respond to customer requirements with greater speed and flexibility while supporting the introduction of new ICE and EV models.

He also reiterated Kia’s commitment to expanding its Made-in-India manufacturing footprint and serving both domestic and overseas markets.

The USD 2 billion investment represents an important step in Kia India’s expansion strategy, with the company looking to strengthen its position in one of the world’s largest automotive markets.

With an additional 2 lakh units of annual capacity planned from early 2030, the new facility is expected to play a key role in Kia’s next phase of growth while contributing to Andhra Pradesh’s industrial development, employment generation and the wider Indian automotive ecosystem.