Kia India is reportedly preparing a $1.5bn investment to expand manufacturing at Anantapur, Andhra Pradesh, with an announcement expected at an investor summit next week.
According to the Economic Times (ET) report, the proposed investment would add a production line at Kia India’s Anantapur facility.
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The addition is expected to increase the plant’s annual installed capacity from about 300,000 units to around 500,000 units.
Sources cited in the report said the additional capacity would give the company greater manufacturing flexibility for new vehicle models and different powertrain configurations.
Kia India did not provide details of the planned capital allocation. In a written response to the ET, the company said: “Kia India continues to see strong momentum across our portfolio – a clear reflection of the trust our customers continue to place in us. We remain closely attuned to market response and evolving customer demand, and this continues to guide how we think about our portfolio and our plans.”
The capacity addition is intended to increase manufacturing volume for Kia India’s presence in the Indian automotive market.
Last month, parent company Hyundai Motor Group announced plans to invest $15.5bn in India between 2026 and 2032.
The group said the investment would position India as a “strategic core market for the group’s future growth, emerging market expansion, and next-generation automotive innovation.”
In the same month, sister company Hyundai Motor inaugurated a new assembly plant in India.
Hyundai Motor’s Pune facility has an initial annual production capacity of 170,000 vehicles, taking the group’s overall annual capacity in the country to 1.4 million vehicles.
This includes 824,000 units per year at Hyundai’s Chennai facility and 431,000 units per year at Kia’s Anantapur plant.
The Pune plant, which is scheduled to be expanded to 320,000 units per year by 2030, features flexible production systems capable of supporting multiple vehicle models, including internal combustion engine and hybrid vehicles.
