Kia to establish second India manufacturing facility in Andhra Pradesh

Kia India will invest USD 2 billion, alongside its supplier partners, to establish its second manufacturing facility in Andhra Pradesh, taking its combined annual production capacity to 6.3 lakh vehicles. The company has signed a memorandum of understanding (MoU) with the Andhra Pradesh government for the proposed facility, according to an official company announcement.

1. Second plant to have annual manufacturing capacity of 2 lakh units. 
2. New facility to support introduction of newer Kia models.

The announcement follows an earlier report by our sister publication Autocar Professional, which had exclusively reported on Kia India's plans to evaluate an additional production line at its Anantapur facility.

Kia India's second manufacturing plant: All you need to know

The proposed facility will be spread across 465 acres, including land for Kia and its supplier partners, and will have an annual installed capacity of 2 lakh units. Production is scheduled to begin in early 2030. The project is expected to generate approximately 12,000 additional direct and indirect job opportunities, according to Kia. The new plant will support the production of additional models across internal combustion engine (ICE) and electric vehicle (EV) powertrains. With the second facility, Kia India's total annual manufacturing capacity will increase from the existing 4.3 lakh units at Anantapur to 6.3 lakh units.

Kia India established its existing Anantapur manufacturing facility in 2017, with an annual production capacity of 4.3 lakh vehicles. The company and its supplier partners have invested approximately USD 2.9 billion in the existing plant, taking the cumulative investment across both facilities to around USD 5 billion with the proposed expansion. 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, according to a PTI report.

The announcement was made by Gwanggu Lee, managing director and CEO of Kia India, at the CII Partnership Summit on November 12. Lee said the second plant would increase the company's ability to introduce new models across ICE and EV powertrains and serve domestic and overseas markets.