Kia India Invests $2 Billion in Second Manufacturing Plant

Kia India is investing $2 billion to establish a second manufacturing facility in Andhra Pradesh, India. Managing Director and CEO Gwanggu Lee announced the expansion during the CII Partnership Summit in Visakhapatnam, detailing a plan to add 200,000 units of annual production capacity.

The new facility will be located in Anantapur on a 465-acre site that includes supplier areas. Once operational, the plant will produce both internal combustion engine and battery-powered vehicles, bringing the company's total capacity across two plants to approximately 630,000 vehicles. The project is expected to create 12,000 direct and indirect jobs.

This expansion follows a broader $15.5 billion investment commitment to India from parent company Hyundai Motor Group. While Kia has signed a Memorandum of Understanding with the Government of Andhra Pradesh to formalize the investment, the company has not yet disclosed a specific timeline for the plant's completion or operational date.