Kia India has announced a major expansion of its manufacturing operations with a combined investment of USD 2 billion (approximately ₹17,700 crore) by the company and its supplier partners to establish its second manufacturing facility in Andhra Pradesh. The announcement follows the signing of a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh on 12 November 2026.

The proposed facility will strengthen Kia’s manufacturing footprint in India, increase production capacity and support the company’s long-term growth ambitions in the domestic and international automotive markets.

Kia’s Second Plant to Add 2 Lakh Units of Annual Capacity

Spread across a combined 465 acres for Kia and its supplier partners, the new manufacturing facility is expected to have an annual installed production capacity of 2 lakh units. With this addition, Kia India’s combined annual manufacturing capacity will increase to more than 6 lakh units across its two plants.

According to the company, the second facility is expected to generate approximately 12,000 additional direct and indirect employment opportunities, contributing to industrial development and strengthening the regional automotive ecosystem.

The existing Kia manufacturing facility in Anantapur, Andhra Pradesh, has an annual production capacity of 4.3 lakh units and currently employs 24,237 people, including direct and indirect employees.

New Models Across ICE and EV Powertrains

The upcoming manufacturing facility is expected to support the production of new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. The expansion will also improve Kia India’s ability to respond to changing customer demand and introduce new products with greater production flexibility.

Commenting on the investment, Gwanggu Lee, Managing Director and CEO of Kia India, highlighted the strategic importance of the Indian market to the company’s global growth ambitions. He stated that the new facility would strengthen Kia’s ability to serve domestic and overseas markets while expanding its Made-in-India footprint.

Production Expected to Begin in Early 2030

The second manufacturing plant is scheduled to commence production in early 2030. With the initial investment of USD 2.9 billion in its existing facility and the proposed USD 2 billion expansion, Kia’s cumulative investment across both plants will reach approximately USD 5 billion.

The latest announcement underlines Kia’s growing commitment to India, positioning the country as an important manufacturing and export base as the automotive industry transitions towards electrification and new mobility technologies.