Mumbai: South Korean automobile manufacturer Kia India has announced plans to invest $2 billion in a new manufacturing facility in Andhra Pradesh, marking a major expansion of its operations in the country.
The proposed investment is expected to generate approximately 12,000 jobs and increase Kia India's annual vehicle production capacity to 6.30 lakh units. Gwanggu Lee, Managing Director and Chief Executive Officer of Kia India, announced the expansion at the CII Partnership Summit in Visakhapatnam on Thursday.
Production Capacity To Rise
Kia currently operates a manufacturing facility in Anantapur, Andhra Pradesh, with an annual production capacity of 4.30 lakh vehicles. The existing plant was established in 2017 and commenced operations in 2019. The proposed facility will increase the company's total annual manufacturing capacity by approximately 2 lakh vehicles. However, Kia has not disclosed the investment timeline or the expected commissioning date.
Kia's India Manufacturing Performance
During FY26, Kia India manufactured approximately 3.17 lakh vehicles. Of these, 2.89 lakh units were dispatched to the domestic market, while 27,953 vehicles were exported. The latest expansion reflects the automaker's focus on strengthening its manufacturing footprint and supporting future demand.
Andhra Pradesh Attracts Investments
The announcement follows fresh investment commitments from three South Korean automobile component suppliers. Hwashin, Seoyon and Iwamet recently signed agreements with the Andhra Pradesh government to establish manufacturing facilities in Anantapur district. Their combined investment commitments total ₹1,614 crore, with approximately 1,418 employment opportunities expected. Individual investment commitments stand at ₹850 crore, ₹514 crore and ₹250 crore.
Jobs And Supply Chain Growth
Kia's proposed investment could strengthen Andhra Pradesh's automobile manufacturing ecosystem by creating opportunities across auto components, logistics and skilled employment. The expansion is also expected to encourage ancillary industries and deepen regional supply-chain networks. The announcement reinforces Andhra Pradesh's position as an emerging automobile manufacturing hub while expanding Kia India's long-term production capabilities.
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