Kia to invest $2 bn in new Andhra plant, boost annual car production to 6.3 lakh
NEW DELHI: Kia India giving a major boost to its Andhra Pradesh manufacturing operations, with a $2 billion investment in a new plant. The proposed facility is expected to create around 12,000 jobs and take the South Korean automaker's annual production capacity to 6.3 lakh vehicles.Kia India managing director and CEO Gwanggu Lee announced the expansion while speaking at the CII Partnership Summit on Thursday.
"I am so delighted to announce the expansion of Kia's presence in Andhra Pradesh through the establishment of an additional manufacturing plant," he said.However, the company has not specified when it plans to make the investment or when the additional production capacity will become operational.Kia looks to ramp up production capacity to 6.3 lakhKia India currently has a manufacturing plant in Anantapur, Andhra Pradesh, which was set up in 2017.
The facility has an annual production capacity of 4.30 lakh vehicles. The proposed new plant will increase the company's total annual capacity to 6.30 lakh units.In financial year 2026, Kia India produced 3.17 lakh vehicles. Of these, 2.89 lakh units were dispatched in the domestic market, while 27,953 units were exported.Speaking about the company's growth in India, Lee said its first manufacturing plant in Andhra Pradesh was set up and commissioned in a record 14 months."Our journey in Andhra Pradesh began in 2017, when our first manufacturing plant was established and commissioned in a record time of just 14 months.
Kia is proud of being among India's leading automotive manufacturers and the fastest OEM to achieve one million vehicle production in just four years and two million vehicles within seven years, Lee said.From electric to CNG: Kia plans launches across segmentsThe manufacturing expansion comes as Kia prepares to introduce several models across different powertrains to increase its share in India's passenger vehicle market.Apart from its battery-electric, petrol and diesel vehicles, the automaker is also planning to launch hybrid models.
It has already announced its entry into the CNG segment with the Carens.Kia recently launched a facelifted version of its popular Seltos mid-size SUV and the new Sorento. The company expects both models to generate strong volumes going forward.The Korean giant's existing India portfolio also includes the Sonet, Syros, Carens and Carnival SUVs.Kia's manufacturing facility in Anantapur has also grown into an important export hub.
The plant has exported more than 4.1 lakh vehicles and kits to nearly 100 countries.Lee said the facility's export operations have strengthened India's position as a global manufacturing powerhouse and supported the vision of Make it India for the world.You use AI every day. Now get your AI Quotient. Take the AIQ test.
