Kia to Invest ₹17,000 Cr in Andhra Pradesh Plant; to Create 12,000 Jobs

South Korean automaker Kia has announced a combined investment of $2 billion (approximately ₹17,000 crore) with its supplier partners to establish its second manufacturing facility in Anantapur, Andhra Pradesh. The proposed plant is expected to generate around 12,000 direct and indirect employment opportunities and increase Kia India’s annual production capacity to over 6 lakh vehicles.

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Kia announced the expansion, following the signing of a Memorandum of Understanding (MoU) with the Andhra Pradesh government. The proposed facility will cover a combined 465 acres for Kia and its supplier partners, with production planned to begin in early 2030.

Key Highlights

• Kia signs MoU with the Government of Andhra Pradesh for a second plant in Anantapur, with production planned to begin in early 2030
• Covering 465 acres, the new facility for Kia and its suppliers is expected to create approximately 12,000 direct and indirect jobs
• New plant to add annual capacity of 200,000 vehicles, taking Kia India’s combined capacity to over 600,000 vehicles a year
• Second plant brings total investment by Kia and its supplier partners across both plants to nearly USD 5 billion

The new plant will add an annual manufacturing capacity of 2 lakh vehicles to the existing capacity of 4.3 lakh units, taking Kia India’s combined annual production capacity to approximately 6.3 lakh vehicles.

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New Plant Expected to Generate 12,000 Jobs

The proposed manufacturing facility is expected to create approximately 12,000 direct and indirect employment opportunities through its operations and supplier network.

Also Read: Kia India Plans Capacity Expansion, Could Drive Auto Talent Hiring

The investment is also expected to generate opportunities across automotive component manufacturing, logistics, supply-chain management and other supporting services.

Kia’s existing manufacturing facility in Anantapur supports approximately 24,000 direct and indirect jobs. The company and its supplier partners have invested around $2.9 billion in the existing facility, which began mass production in August 2019.

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With the proposed second plant, the combined investment by Kia and its supplier partners across both facilities will reach nearly $5 billion.

New Facility to Manufacture ICE and Electric Vehicles

The proposed plant will include integrated manufacturing operations covering stamping, welding, painting and vehicle assembly.

Kia plans to use the additional capacity to introduce new models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. The expansion is expected to strengthen its ability to serve both domestic and international markets.

Gwanggu Lee, Managing Director and CEO of Kia India, said India is central to the company’s long-term growth plans. He added that the second manufacturing facility would improve production flexibility and support the introduction of new models across ICE and EV categories.

The expansion will further strengthen Andhra Pradesh’s automotive manufacturing ecosystem and create additional employment opportunities through manufacturing operations and supporting industries.