South Korean automaker Kia is set to invest $2 billion, alongside its suppliers, to establish a second manufacturing plant in Andhra Pradesh, India. This significant expansion will add an annual production capacity of 200,000 units, elevating Kia India’s total manufacturing capability across both its facilities to over 600,000 units.
Boosting Production and Job Creation in India
The new facility, spanning a combined 465 acres for Kia and its associated suppliers, is projected to generate approximately 12,000 new direct and indirect job opportunities. This move underscores Kia’s deepening commitment to the Indian market, which it entered in 2019 and where it has since secured over 6% market share in the passenger vehicle segment.
Gwanggu Lee, Managing Director and CEO of Kia India, emphasized the country's strategic importance. “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,” Lee stated. “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.”
Expanding 'Made-in-India' Footprint
Lee further added that the expansion would “further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets.” With this new investment, Kia’s cumulative commitment across its two Indian plants will reach up to $5 billion, reinforcing the nation’s pivotal role in the automaker’s global strategy.
This announcement follows a broader investment plan by Kia’s parent company, Hyundai Motor Group. Just four weeks prior, Hyundai Motor Group declared its intention to invest $15.5 billion in India between 2026 and 2032. This larger investment aims to expand manufacturing capacities at both Hyundai Motor India Ltd and Kia India, while also bolstering research and development efforts, local sourcing initiatives, and future mobility businesses.