Kia India to Build Second Factory in Andhra Pradesh With Two Billion Dollar Spend

New Plant Details

Kia India has signed an agreement with the Andhra Pradesh government to build its second manufacturing plant in Anantapur. The project brings a combined investment of USD 2 billion from Kia and its supplier partners. Production at the new site is planned to start in early 2030. The factory will add two lakh vehicles to the company's yearly capacity, bringing the total yearly manufacturing capacity in India to 6.30 lakh units.

Jobs And Production

The new facility and its supplier operations will cover a combined 465 acres of land. Kia expects the project to create roughly 12,000 direct and indirect jobs. The plant will handle four main manufacturing steps: stamping, welding, painting, and assembly. Gwanggu Lee, Managing Director and CEO of Kia India, stated that the second plant will give the firm more freedom to meet demand and launch new models for both domestic and foreign markets.

Investment And Context

Kia's existing plant in Anantapur has a yearly capacity of 4.30 lakh units and spans 945 acres. That first site supports 24,237 direct and indirect jobs and had an initial investment of USD 2.9 billion. The total investment across both plants will reach up to USD 5 billion, which equals Rs 47,000 crores. The new facility will build models using both internal combustion engines and electric powertrains, though specific vehicle models have not been named yet.

Context

Automobile companies often expand manufacturing capacity through local supplier networks to reduce logistics costs and better serve growing regional demand. This expansion follows a broader investment program announced by Hyundai Motor Group for its operations in the country through 2032.