Kia India Announces ₹19,010 Crore Investment for Second Andhra Pradesh Plant, Production to Begin in 2030

Kia India plans to invest ₹19,010 crore in a second manufacturing facility in Andhra Pradesh, adding 2 lakh vehicles to annual production capacity from 2030.

Kia India Plans ₹19,010 Crore Investment in Second Manufacturing Plant in Andhra Pradesh

Kia India is preparing to expand its manufacturing operations in India with a proposed investment of approximately ₹19,010 crore ($2 billion) in a second production facility in Anantapur, Andhra Pradesh.

The new manufacturing plant is expected to begin operations in 2030 and will strengthen the company's production capabilities for both domestic and international markets.

Spread across approximately 465 acres, the proposed facility will have an annual production capacity of 2 lakh vehicles. The expansion will support Kia's long-term growth strategy in India while increasing its ability to manufacture conventional and electric vehicles.

Kia's Second Manufacturing Plant to Add 2 Lakh Vehicles Annually

The proposed manufacturing facility in Anantapur will add 200,000 vehicles to Kia India's existing annual production capacity of 430,000 units.

With this expansion, the company will be able to increase its overall production capacity to approximately 630,000 vehicles annually, subject to the planned capacity being fully operational.

The new facility will manufacture vehicles powered by internal combustion engines (ICE) as well as electric motors.

This approach will allow Kia to address demand across different vehicle segments while expanding its presence in the growing electric mobility market.

The additional capacity will also help the company improve production flexibility and support the launch of future models.

₹47,525 Crore Investment Planned Across Kia's Indian Operations

The proposed ₹19,010 crore investment represents an important addition to Kia's existing manufacturing presence in India.

Including the planned expansion and investments made across its manufacturing ecosystem, the company's combined investment in its two Indian facilities and associated supplier networks is expected to reach approximately ₹47,525 crore ($5 billion).

This investment highlights Kia's long-term commitment to the Indian automotive industry.

The expansion is also expected to create opportunities for component manufacturers, logistics providers and other businesses connected to the automobile supply chain.

New Plant to Manufacture Petrol and Electric Vehicles

Kia's upcoming manufacturing facility will focus on producing vehicles equipped with both conventional internal combustion engines and electric powertrains.

This production strategy will help the company respond to changing consumer preferences and developments in India's automobile market. While petrol-powered vehicles continue to represent an important part of the market, demand for electric vehicles is gradually increasing.

By supporting both technologies, Kia aims to maintain a flexible manufacturing setup capable of serving different customer requirements.

The additional facility will also strengthen the company's ability to introduce new models for Indian customers and overseas markets.

Kia's Existing Anantapur Manufacturing Facility

Kia's latest expansion builds on its established manufacturing operations in Anantapur, Andhra Pradesh.

The company entered the state following an agreement with the Andhra Pradesh Government in 2017. Its existing manufacturing facility began mass production in August 2019.

Over the years, the plant has become an important part of Kia's Indian operations, manufacturing popular models such as the Kia Seltos and Kia Sonet.

Vehicles produced at the facility serve both domestic customers and international markets.

The proposed second plant will build on this manufacturing foundation and further strengthen Kia's presence in the region.

Kia Expansion to Strengthen India's Automotive Manufacturing Industry

Kia's proposed investment comes at a time when international automobile manufacturers are increasing their manufacturing commitments in India.

As the world's third-largest automobile market, India has become an important destination for global automotive companies looking to expand production and serve growing consumer demand.

The new facility could strengthen the country's automotive manufacturing ecosystem through increased production capacity, supplier development and additional industrial activity.

It is also expected to support the development of manufacturing capabilities for electric and conventional vehicles.

The expansion could create further opportunities for businesses involved in automotive components, technology, transportation and logistics.

Production Expected to Begin in 2030

Kia India is targeting 2030 to begin production at its proposed second manufacturing facility. Once operational, the plant will provide additional capacity for new vehicle launches and improve the company's ability to serve domestic and export markets.

The expansion represents a significant step in Kia's long-term India strategy, particularly as competition among automobile manufacturers continues to increase.

With a planned investment of $2 billion, the company is looking to strengthen its manufacturing infrastructure and establish a larger production base in the country.

Conclusion

Kia India's proposed ₹19,010 crore investment in a second Andhra Pradesh manufacturing plant marks a major expansion of its Indian operations. With an additional annual capacity of 2 lakh vehicles and production targeted for 2030, the project is expected to support new model launches, strengthen exports and create further opportunities across India's automotive supply chain.