South Korean automaker Kia and its suppliers plan to invest about $2bn in a second manufacturing plant in the southern Indian state of Andhra Pradesh.
The automaker signed a memorandum of understanding with the state government for the project, which is scheduled to begin commercial production in early 2030.
The facility will have annual installed capacity of 200,000 units and will produce new internal combustion engine (ICE) and electric vehicle (EV) models.
Kia and its supply network will occupy a combined 465 acres at the planned Anantapur site.
Operations at the plant will include stamping, welding, painting, and assembly.
The project is expected to create about 12,000 direct and indirect jobs.
It is expected to increase Kia India’s combined annual production capacity to more than 600,000 units.
Kia’s existing Anantapur plant has annual capacity of 430,000 units.
The first facility covers 945 acres, employs 24,237 people directly and indirectly, and involved an initial $2.9bn investment by Kia and its suppliers.
Kia India managing director and CEO Gwanggu Lee said: “India is central to Kia’s long-term growth ambitions, and the trust our customers have placed in us since we began operations in Anantapur has been instrumental in our journey.
“Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains. As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here.”
The existing site produces the Seltos, Syros (ICE and EV), Sonet, Carens (ICE and CNG), Carens Clavis (ICE, EV, and CNG), Carnival, and Sorento (ICE and HEV).
Kia’s cumulative investment in India is expected to reach up to $5bn following the construction of the second plant.
Last month, parent company Hyundai Motor Group said it would invest $15.5bn in India from 2026 to 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.”
Also last month, its sister company Hyundai Motor opened a new assembly plant in India.
