Kia India is preparing for its next major growth phase with a second manufacturing facility in Anantapur, Andhra Pradesh, backed by a combined investment of USD 2 billion from the automaker and its supplier partners. The Kia India $2 Billion Investment in 2nd Manufacturing Plant will add capacity for upcoming models powered by internal combustion engines and electric powertrains.
Announced after an MoU with the state government on November 12, 2026, the 465-acre project is targeted to begin production in early 2030, creating jobs and strengthening India’s role in Kia’s global manufacturing network for domestic customers and export markets alike.
What Is Kia Planning in Andhra Pradesh?
Kia India and its supplier partners will invest USD 2 billion (approximately ₹18,770–₹19,010 crore) to establish a second manufacturing plant in Anantapur, Andhra Pradesh. The 465-acre facility will have an annual production capacity of 2 lakh vehicles, generate approximately 12,000 direct and indirect jobs, and begin production in early 2030. It will manufacture upcoming ICE and electric vehicle models.
Kia’s Second Manufacturing Plant: Investment and Production Capacity
The proposed facility represents a significant expansion of Kia India’s manufacturing operations. The investment will be jointly funded by Kia India and its Indian and South Korean component suppliers, strengthening the company’s domestic manufacturing ecosystem.
Spread across 465 acres, the new facility will add 200,000 units of annual production capacity. Kia’s existing Anantapur manufacturing plant already has an installed capacity of 430,000 vehicles annually.
Following the expansion, Kia India’s combined annual manufacturing capacity will reach approximately 630,000 vehicles, making it a major automotive production hub in the country.
The Kia India $2 Billion Investment in 2nd Manufacturing Plant will also increase the company’s cumulative investment across both Indian facilities to approximately USD 5 billion, including the USD 2.9 billion committed to its existing manufacturing operations.
New Plant to Support Upcoming ICE and Electric Vehicles
One of the major highlights of the upcoming facility is its ability to support new vehicle models across internal combustion engine (ICE) and electric vehicle (EV) powertrains.
Rather than focusing exclusively on electric vehicles, the plant will provide manufacturing flexibility for Kia’s upcoming product portfolio. This strategy will help the automaker respond to changing customer preferences while strengthening its presence across multiple vehicle segments.
The facility will support both domestic sales and overseas exports, further expanding Kia’s Made-in-India manufacturing footprint.
12,000 New Employment Opportunities Expected
The second manufacturing facility is expected to create approximately 12,000 direct and indirect employment opportunities.
The investment is also expected to benefit component manufacturers, logistics providers, local businesses and supporting industries. The development of a larger supplier ecosystem around the facility could strengthen Andhra Pradesh’s position as an important automotive manufacturing destination.
Existing Anantapur Plant Already Produces Multiple Models
Kia’s existing manufacturing facility, which commenced operations in August 2019, occupies 945 acres and has an annual production capacity of 4.3 lakh units. It currently employs approximately 24,237 people through direct and indirect employment.
Its production portfolio includes the Seltos, Syros (ICE and EV), Sonet, Carens (ICE and CNG), Carens Clavis (ICE, EV and CNG), Carnival and Sorento (ICE and HEV).
Kia India CEO Highlights Long-Term Growth Strategy
Commenting on the expansion, Gwanggu Lee, Managing Director and CEO of Kia India, said India remains central to the company’s long-term growth ambitions.
He highlighted that the second plant would strengthen production flexibility, improve the company’s ability to respond to customer demand and support the introduction of new ICE and EV models.
He also emphasised Kia’s commitment to expanding its Made-in-India footprint and serving domestic and international markets.
Why Is Kia Expanding Its Manufacturing Capacity?
Kia’s expansion comes amid increasing demand for its vehicles in India. Between January and October 2026, the company dispatched 286,470 vehicles, registering 21% year-on-year growth. This strong performance has pushed its existing manufacturing facility towards high capacity utilization.
The expansion also aligns with Hyundai Motor Group’s broader USD 15.5 billion investment commitment in India between 2026 and 2032, announced in October 2026.
What This Means for India’s Automotive and EV Industry
The $2 Billion Investment in the Kia India 2nd Manufacturing Plant marks an important development for India’s automotive manufacturing ecosystem. By adding capacity for both ICE and electric vehicles, Kia is positioning itself to participate in the country’s evolving mobility market.
With production targeted for early 2030, the project could strengthen domestic manufacturing, create thousands of employment opportunities, support component suppliers, and increase export potential.
The expansion also reinforces Andhra Pradesh’s growing importance as an automotive manufacturing destination while highlighting India’s position in Kia’s long-term global growth strategy.
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