Kia India Plans $2 Billion Investment In Second Plant In Andhra Pradesh, 12,000 Jobs By 2030

South Korean automaker Kia has announced a $2 billion investment, along with its supplier partners, to set up its second manufacturing facility in Andhra Pradesh. The new plant will add an annual production capacity of 2 lakh vehicles, taking Kia India's total capacity to more than 6 lakh units.

The announcement follows the signing of a Memorandum of Understanding (MoU) between Kia India and the Andhra Pradesh government. The proposed facility will spread across 465 acres, including land for Kia and its supplier partners. It is expected to create around 12,000 direct and indirect jobs.

According to the company, production at the new plant is expected to begin in early 2030. The facility will manufacture new models with both internal combustion engine (ICE) and electric vehicle (EV) powertrains. Its operations will include stamping, welding, painting and vehicle assembly.

Kia's existing manufacturing plant is also located in Anantapur and has an annual capacity of 4.3 lakh vehicles. It currently manufactures models such as the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento, with different powertrain options.

The existing facility covers 945 acres and has a workforce of 24,237 direct and indirect employees. With the second plant, Kia's combined manufacturing capacity in India will cross 6 lakh vehicles annually. Its total investment across both facilities, including supplier investments, is expected to reach $5 billion.

Speaking about the expansion, Kia India Managing Director and CEO Gwanggu Lee said the new facility would help the company respond to customer demand more efficiently. It will also give Kia greater flexibility to introduce new models across different powertrains.

Lee added that India remains central to Kia's long-term growth plans. The expansion will strengthen its manufacturing presence in the country and support both domestic sales and exports.

The investment comes as global automakers increase their presence in India, the world's third-largest automobile market. Hyundai Motor Group has announced a $15.5 billion investment plan through 2032, while Suzuki Motor has outlined plans to invest around $8 billion in the country.