Kia India will invest $2 billion in an additional manufacturing plant in Andhra Pradesh, a move that is expected to create around 12,000 jobs and raise the automaker’s annual production capacity in India to 6.3 lakh vehicles. The announcement was made by Kia India managing director and CEO Gwanggu Lee at the CII Partnership Summit on Thursday.
The company has not yet specified when the investment will be made or when the additional capacity will become operational. Kia currently operates a manufacturing facility in Anantapur, Andhra Pradesh, which was established in 2017 and has an annual production capacity of 4.30 lakh vehicles.
Lee said the proposed expansion would strengthen Kia’s presence in the state through the establishment of an additional manufacturing plant. The announcement adds a major industrial investment to Andhra Pradesh’s manufacturing base, but details such as the proposed plant’s location, construction schedule, land requirements and implementation milestones were not disclosed in the statement reported by the Times of India.
Kia India produced 3.17 lakh vehicles in financial year 2026. Of this total, 2.89 lakh vehicles were dispatched in the domestic market and 27,953 units were exported, according to the report. Once the additional facility becomes operational, the company’s combined annual production capacity is expected to reach 6.30 lakh vehicles.
The Anantapur facility has also developed into an export hub for Kia. The company has exported more than 4.1 lakh vehicles and kits from the plant to nearly 100 countries. Lee said the facility’s export operations had supported India’s position as a global manufacturing base and contributed to the Make in India for the world initiative.
Kia’s expansion plans come as the company prepares to widen its passenger vehicle portfolio across different powertrains. Its India strategy includes battery-electric, petrol and diesel vehicles, along with planned hybrid models. Kia has also announced its entry into the compressed natural gas segment with the Carens.
The company’s current India portfolio includes the Sonet, Syros, Carens, Carnival, Seltos and Sorento. Kia recently launched facelifted versions of the Seltos and the new Sorento, and expects both models to contribute to future volumes, according to the report.
The company’s first Andhra Pradesh plant was established and commissioned in 14 months, Lee said. The new investment will now require further details on approvals, site development, construction, hiring and production scheduling before its effect on regional employment and industrial capacity can be assessed. Kia has not announced a commissioning date for the proposed facility.
