Kia to spend $2 billion on new Andhra Pradesh plant, aiming for 2030 output

Investment

Kia and its suppliers will pour roughly $2 billion into a second manufacturing facility in Andhra Pradesh, with the plant slated to start output in early 2030. The venture follows a memorandum of understanding signed with the state government and will create around 12,000 direct and indirect jobs.

Reaction

“India is central to Kia’s long‑term growth ambitions,” said Gwanggu Lee, managing director and CEO of Kia India. He added that the new site will let the firm roll out fresh models and supply both the domestic market and overseas buyers.

Production Plans

The Anantapur plant will cover about 465 acres, including space for component makers. It will produce cars with internal‑combustion engines and electric powertrains, boosting Kia India’s annual capacity by 200,000 units to a total of 430,000. Combined with the existing Anantapur factory, which began mass production in August 2019 and currently builds the Seltos and Sonet, Kia’s total Indian investment reaches roughly $5 billion.

Context

India, the world’s third‑largest car market, is seeing a wave of new capital as global makers such as Suzuki, Toyota and Honda expand local output. Kia’s new plant adds to this trend, aiming to meet rising demand and strengthen export capabilities.