NEW DELHI: Kia India has announced a $2 billion investment in its second manufacturing plant in Andhra Pradesh, strengthening its production capabilities in the country. The proposed facility, which will be set up in partnership with its supplier companies, is expected to create around 12,000 direct and indirect jobs and add 2 lakh units to its annual production capacity.The announcement follows the signing of a Memorandum of Understanding (MoU) between Kia India and the Andhra Pradesh government on Thursday. Spread across a combined 465 acres for Kia and its supplier partners, the new facility will take the company’s total annual manufacturing capacity in India to over 6 lakh vehicles.Production at the second plant is expected to begin in early 2030. With this expansion, Kia’s cumulative investment across its two manufacturing facilities in India will reach $5 billion.
Kia expands manufacturing footprint with second plant
Kia India currently operates a manufacturing facility in Anantapur, Andhra Pradesh, which was established in 2017. The existing plant has an annual production capacity of 4.3 lakh vehicles and has received an initial investment of $2.9 billion, including investments by supplier partners.The proposed second facility will have an installed annual capacity of 2 lakh units. Together, the two plants will take Kia India’s manufacturing capacity to over 6 lakh vehicles a year.Speaking about the expansion, 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.“He added that the expansion would strengthen the company’s Made-in-India footprint and its ability to serve both domestic and overseas markets.
New plant to support ICE and EV launches
The manufacturing expansion comes as Kia prepares to strengthen its presence in India’s passenger vehicle market with new models across internal combustion engine (ICE) and electric vehicle (EV) segments.According to the company, the second plant will support the introduction of new models across both powertrains. Kia’s existing India portfolio includes the Seltos, Syros, Sonet, Carens, Carens Clavis, Carnival and Sorento, with offerings across petrol, diesel, CNG, hybrid and electric powertrains.The new facility will also strengthen the company’s manufacturing capabilities and give it greater flexibility to respond to demand.Kia’s existing manufacturing facility in Anantapur has also developed into an important export hub, exporting over 4.1 lakh vehicles and kits to nearly 100 countries. The company added that its second plant would further expand its manufacturing footprint in India and strengthen its ability to cater to overseas markets.With a combined investment of $5 billion across its two facilities, Kia is looking to deepen its manufacturing presence in the country while expanding its production capacity and contribution to the country’s automotive ecosystem.
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