Kia to Invest USD 2 Billion in Second India Plant in Andhra Pradesh

November 13, 2026 Avinash

The proposed Kia manufacturing facility will cover 465 acres, including land for the company and its supplier partners. It will have an annual production capacity of 2 lakh vehicles, taking Kia India’s total installed capacity from the existing 4.3 lakh units to 6.3 lakh units.

Kia expects the new facility to create around 12,000 direct and indirect job opportunities. The company plans to begin production at the plant in early 2030. The project will also support the introduction of new Kia models across internal combustion engine (ICE) and electric vehicle (EV) powertrains.

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Kia’s Existing Anantapur Plant

Kia currently operates its manufacturing facility in Anantapur, Andhra Pradesh. The company established the plant in 2017, and it began commercial production in 2019. The existing facility has an annual installed capacity of 4.3 lakh vehicles and spans around 945 acres, including supplier facilities.

Kia and its supplier partners have invested approximately USD 2.9 billion in the existing facility. With the proposed USD 2 billion investment in the second plant, the cumulative investment across both facilities will reach around USD 5 billion.

The existing plant supports production of several Kia models for domestic sales and exports. In FY2026, Kia India produced 3.17 lakh vehicles, dispatched 2.89 lakh units to the domestic market and exported 27,953 units.

New Plant to Manufacture ICE and Electric Vehicles

Kia’s second manufacturing facility will support the production of vehicles with different powertrain options, including petrol, diesel and electric models. The expansion will give the company additional manufacturing capacity as it prepares to introduce more vehicles in India and overseas markets.

According to Kia India, the new facility will improve production flexibility and help the company respond to changing customer demand. The announcement also strengthens Andhra Pradesh’s position as an important automotive manufacturing hub.

Kia India’s Expansion Plans

Kia India announced the investment through an MoU with the Andhra Pradesh government at the CII Partnership Summit on November 12, 2026. The company’s second plant will expand its manufacturing footprint and increase its ability to serve domestic and export markets. Production is planned to begin in early 2030.