Kia to Invest USD 2 Billion to Set Up New Factory in Andhra Pradesh
The new facility will add 2 lakh units of annual manufacturing capacity, scheduled to begin in early 2030, taking Kia India’s combined capacity across both plants to 6.30 lakh units.
Pune: Kia, the South Korean carmaker and its auto component suppliers in India will invest $2 billion or Rs 18,700 crore to set up a second manufacturing factory at Anantapur in Andhra Pradesh.
The new facility will add 2 lakh units of annual manufacturing capacity, scheduled to begin in early 2030, taking Kia India’s combined capacity across both plants to 6.30 lakh units.
“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,” said Gwanggu Lee, MD and CEO at Kia India.
Spread across a combined 465 acres for Kia and its suppliers, the proposed facility located in Anantapur is expected to generate approximately 12,000 more direct and indirect job opportunities, the company said.
The maker of Seltos and Sonet SUV models said the fresh expansion comes to cater to growing demand as it was already meeting full capacity production mark at its existing plant
By dispatching 2,86,470 units between January and October 2026, up 21% year-on-year, the automaker surpassed its entire calendar-year 2025 sales in just 10 months.
Mr. Gwanggu Lee, MD & CEO, Kia India
Kia averages around 28,000-30,000 units per month, with the Seltos being its main volume driver.
In FY2026, Kia India produced 3.17 lakh vehicles. It dispatched 2.89 lakh units to the domestic market, while exports stood at 27,953 units.
Kia has invested roughly $2.9 billion in its existing Anantapur facility which has a production capacity of 430,000 units per annum.
Kia India has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to support its expansion plan.
Last month, Hyundai Motor Group had committed investment of $15.5 billion from 2026 through 2032 in India following a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi on October 13.
Hyundai is the parent company of Kia and Hyundai brands which operate independently and compete with each other in India. A large part of the investment is allocated towards expanding manufacturing capacity across Hyundai Motor India and Kia India.