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Kia Invests $2 Billion in India for New Plant
12 Nov
Summary
- Kia will invest $2 billion in a second manufacturing plant in Andhra Pradesh.
- The new facility will add 2 lakh units to annual production capacity.
- This expansion is expected to create approximately 12,000 new jobs.
Kia India is set to expand its manufacturing capabilities with a substantial $2 billion investment to construct a second plant in Andhra Pradesh. This initiative will increase the company's annual production capacity by 2,00,000 units, elevating its total installed capacity in India to 6,30,000 vehicles. The cumulative investment by Kia in the country will reach $5 billion upon completion of this new facility.
The new plant, planned across 465 acres, is projected to create approximately 12,000 jobs, both directly and indirectly. This expansion is crucial for Kia to meet growing domestic demand and enhance its export operations. The company currently operates its first plant in Anantapur, Andhra Pradesh, which has an annual capacity of 4,30,000 vehicles.
Kia India aims to leverage this increased capacity to introduce new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. The automaker has seen significant growth, with wholesales increasing by 21.3% year-on-year from January to October 2026. This expansion underscores India's strategic importance for Kia's global growth objectives.
