Kia India to Invest USD 2 Billion in Second Andhra Pradesh Plant

Kia India has signed an MoU with the Government of Andhra Pradesh to invest a combined USD 2 billion. Alongside this, its supplier partners will also join hands for a second manufacturing facility in Anantapur. Scheduled to begin production in early 2030, the expansion takes Kia’s cumulative investment in India to nearly USD 5 billion.

Expansion & Capacity Overview

According to Kia’s official press, the plant spreads across 465 acres for the company and its vendors. For operation, the upcoming plant will house full stamping, welding, painting and assembly operations. Unlike the existing facility, the second plant is earmarked for new models across ICE and EV powertrains. The current plant however builds seven models including the Seltos, Sonet, Syros and Carens.

Particulars	Existing Plant	Second Plant
Start of Production	Operational	Early 2030
Annual Capacity	4,30,000 units	2,00,000 units
Land Area	945 acres	465 acres
Combined Investment	USD 2.9 billion	USD 2 billion
Workforce	24,237	~12,000

Management Commentary on Domestic & Export Strategy

Commenting on the milestone, Mr. Gwanggu Lee, Managing Director and CEO, Kia India, emphasized that India remains central to Kia's long-term global ambitions. He noted that the second facility will allow the automaker to respond faster and with greater flexibility to rising customer demand. This is all due consideration of expanding its "Made-in-India" footprint to serve both domestic buyers and international export markets.

Car Junction's Insights

Kia India’s USD 2 billion commitment sends a clear signal that the Korean carmaker views on India. A developing thought that the country is not just a high-growth domestic market, but a critical global export and EV manufacturing hub. With its existing Anantapur facility already juggling seven distinct nameplates across ICE, CNG, hybrid and electric vehicles, capacity headroom was bound to tighten over the next few years.

Locking in a second plant right next door allows Kia to leverage its established supplier ecosystem in Andhra Pradesh. While, it prepares dedicated lines for next-generation mass-market EVs and global models ahead of 2030.

Check out the Upcoming Kia Cars in India