Kia Announces $2 Billion Investment in New Andhra Plant to Enhance Annual Car Production Capacity
NEW DELHI: Kia India has announced a significant expansion of its manufacturing operations in Andhra Pradesh, with a planned investment of $2 billion for a new plant. This facility is expected to create approximately 12,000 jobs and increase the automaker’s annual production capacity to 630,000 vehicles. Kia India managing director and CEO Gwanggu Lee made the announcement at the CII Partnership Summit on Thursday, expressing enthusiasm for the company’s growth in the region. However, the timeline for the investment and the operational start of the new capacity has not been disclosed.
Kia looks to ramp up production capacity to 630,000
Kia India currently operates a manufacturing plant in Anantapur, established in 2017, with an annual production capacity of 430,000 vehicles. The new plant will enhance the company’s total capacity to 630,000 units. In the financial year 2026, Kia India produced 317,000 vehicles, with 289,000 units sold in the domestic market and 27,953 units exported. Lee highlighted the rapid establishment of the first plant, which was commissioned in just 14 months, and noted Kia’s achievement of producing one million vehicles in four years and two million in seven years.
From electric to CNG: Kia plans launches across segments
The expansion comes as Kia prepares to launch various models across multiple powertrains to boost its presence in India’s passenger vehicle market. The company plans to introduce battery-electric, petrol, and diesel vehicles, along with hybrid models. Kia has already entered the CNG segment with the Carens. Recently, the automaker launched a facelifted version of its popular Seltos mid-size SUV and the new Sorento, anticipating strong sales from both models. Kia’s existing portfolio in India includes the Sonet, Syros, Carens, and Carnival SUVs. The Anantapur facility has also become a key export hub, having shipped over 410,000 vehicles and kits to nearly 100 countries.
