New Delhi: Kia India has announced plans to establish its second manufacturing plant in Anantapur, Andhra Pradesh, with a combined investment of $2 billion (approximately ₹17,000 crore) from the automaker and its supplier partners. The facility, scheduled to begin production in early 2030, will add 200,000 vehicles to Kia’s annual manufacturing capacity and is expected to generate approximately 12,000 direct and indirect employment opportunities.
The announcement follows the signing of a Memorandum of Understanding (MoU) between Kia India and the Government of Andhra Pradesh, expanding the South Korean automaker’s manufacturing presence in a state where it already operates its first Indian production facility.
The proposed plant will occupy a combined 465 acres for Kia and its suppliers, adjacent to its existing manufacturing operations in Anantapur. It will feature stamping, welding, painting and assembly facilities, supporting the production of new models with internal combustion engine (ICE) and electric vehicle (EV) powertrains.
Kia India’s Annual Production Capacity to Reach 630,000 Vehicles
Kia’s existing Anantapur plant has an annual production capacity of 430,000 vehicles. The second facility will add another 200,000 units, taking the company’s combined installed manufacturing capacity to 630,000 vehicles annually, exceeding the 600,000-unit milestone.
The existing facility covers approximately 945 acres, including land occupied by Kia and its suppliers, and represents an initial combined investment of $2.9 billion. It currently supports 24,237 direct and indirect jobs.
With the proposed expansion, Kia and its suppliers’ cumulative investment across both manufacturing facilities will reach approximately $4.9 billion, broadly in line with the company’s stated investment commitment of up to $5 billion.
The additional manufacturing capacity is intended to help Kia respond to increasing domestic demand while strengthening its ability to serve international markets.
New Factory to Manufacture ICE and Electric Vehicles
Unlike a production facility dedicated exclusively to electric vehicles, Kia’s second plant will accommodate models powered by both conventional internal combustion engines and electric powertrains.
This flexible manufacturing approach will allow the company to adapt its future product portfolio to changing consumer preferences and market requirements.
According to Kia’s manufacturing overview, its existing Anantapur facility covers a product portfolio including the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento, with various ICE, CNG, electric and hybrid powertrain configurations listed across the range.
The planned expansion will give Kia additional space to introduce new models without relying entirely on its existing manufacturing infrastructure. In an automotive market where consumer preferences can shift almost as quickly as vehicle technology, production flexibility is becoming increasingly important.
Kia India CEO Highlights Long-Term Growth Strategy
Commenting on the announcement, Gwanggu Lee, Managing Director and CEO, Kia India, said:
“India is central to Kia’s long-term growth ambitions, and the trust our customers have placed in us since we began operations in Anantapur has been instrumental in our journey. Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains. As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here. This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets.”
Andhra Pradesh to Benefit From Manufacturing Expansion
Beyond vehicle production, the proposed facility is expected to contribute to Andhra Pradesh’s industrial development through employment generation, supplier investments and expansion of the regional automotive manufacturing ecosystem.
The 465-acre development will accommodate both Kia’s new factory and associated supplier operations, potentially strengthening the supply chain supporting its Indian manufacturing activities.
The estimated 12,000 additional direct and indirect jobs would also expand Kia’s employment footprint in the state, although the company has not detailed the distribution between factory positions and supplier-related opportunities.
Kia Strengthens Its India Manufacturing Strategy
The investment represents another significant step in Kia’s long-term manufacturing strategy for India, which serves as both a domestic automotive market and a production base for overseas demand.
With production at the second facility planned for early 2030, the project remains several years away from becoming operational. Its eventual output will depend on future product plans, market demand and the pace of implementation.
Nevertheless, the investment signals Kia’s intention to maintain a substantial manufacturing presence in India while preparing for an automotive market increasingly shaped by electrification, changing consumer expectations and global supply-chain requirements.
For Andhra Pradesh, the development could reinforce Anantapur’s position as an automotive manufacturing centre. For Kia, it provides an opportunity to increase production capacity while accommodating the coexistence of conventional and electric vehicles in the years ahead.
Overview of Kia India–
| Particulars | Current Plant | Second Plant |
| Location | Anantapur, Andhra Pradesh, India | Anantapur, Andhra Pradesh, India |
| Planned SOP | In production | Early 2030 |
| Production Capacity | 4,30,000 units/year | 2,00,000 units/year |
| Land area (Kia and Supplier Combined) | 945 acres | 465 acres in expanded area |
| Investment (Kia and Supplier Combined) | US$2.9 billion (the initial investment) | US$2 billion |
| Number of employees (Direct and Indirect) | 24,237 | Approximately 12,000 |
| Products | Seltos, Syros [ICE & EV], Sonet, Carens [ICE & CNG], Carens Clavis [ICE, EV & CNG], Carnival and Sorento [ICE & HEV] | New models across ICE and EV powertrains |
| Main processes | Stamping, welding, painting and assembly | Stamping, welding, painting and assembly |
