Kia To Open Second Plant in Andhra Pradesh - USD 2 Billion Investment Confirmed

Kia India has confirmed it will build a second plant in Anantapur, Andhra Pradesh, with a combined USD 2 billion investment from the carmaker and its supplier partners.

Kia has signed an MoU with the Andhra Pradesh government for the facility, which adds 2 lakh units of annual capacity. Gwanggu Lee, MD and CEO of Kia India, announced the plan at the CII Partnership Summit today.

Kia India Second Plant Capacity and Timeline

The new Kia India plant will have an annual installed capacity of 2 lakh units and will sit on 465 acres shared by Kia and its suppliers. Production is planned to start in early 2030. Stamping, welding, painting and assembly will happen on site, as they do at the existing plant. It will build new models across ICE and EV powertrains.

The second Kia India plant is expected to create 12,000 additional direct and indirect jobs. Together with the existing 4.3 lakh units, combined capacity across both plants will reach 6.3 lakh units.

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.

As we enter our next phase of growth, we remain committed to contributing to India's automotive ecosystem and building on the strong foundation we have created here. This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets."

Existing Anantapur Plant and Investment

Kia established the Anantapur plant in 2017. It covers 945 acres, has an annual capacity of 4.3 lakh units and employs 24,237 people directly and indirectly.

Kia and its suppliers invested USD 2.9 billion in it initially. Adding the Kia India second plant takes cumulative investment across both facilities to around USD 5 billion.

The Kia India plant produced 3.17 lakh vehicles in FY2026. Domestic dispatches stood at 2.89 lakh units, while exports came to 27,953 units.

Current production covers the Seltos, Syros (ICE and EV), Sonet, Carens (ICE and CNG), Carens Clavis (ICE, EV and CNG), Carnival and Sorento (ICE and hybrid).