South Korean automaker Kia Corporation, through its Indian subsidiary Kia India, is planning a $2 billion investment in a second automotive manufacturing plant in Andhra Pradesh, India. The proposed development, which is expected to create approximately 12,000 direct and indirect jobs, will expand the company’s existing manufacturing footprint and strengthen its production capacity for domestic and international markets.
The investment, being undertaken alongside Kia’s suppliers, follows a memorandum of understanding (MoU) signed with the Andhra Pradesh government. According to the announcement on November 12, 2026, production at the proposed facility is targeted to begin in early 2030.
The new manufacturing plant will be established in Anantapur, where Kia already operates its existing Indian production facility. The proposed development will occupy approximately 465 acres, including land allocated for suppliers and supporting automotive manufacturing operations.
What Will the New Kia Manufacturing Plant in Andhra Pradesh Entail?
The proposed facility will add approximately 200,000 vehicles to Kia India’s annual manufacturing capacity, increasing it from the current 430,000 units to approximately 630,000 units.
The plant is also expected to manufacture vehicles powered by both internal combustion engines and electric motors. This production flexibility will allow the automaker to serve different segments of India’s automotive market. This is while supporting its wider international manufacturing and export ambitions.
The $2 billion investment will cover the establishment of the second manufacturing facility alongside investments from suppliers. Kia said the expansion would also support the introduction of new vehicle models. It is also expected to strengthen its ability to serve domestic and overseas markets.
Furthermore, the proposed development will build on Kia’s existing supplier relationships with Indian and South Korean automotive component manufacturers. The inclusion of supplier land within the 465-acre development is also expected to support the creation of a more integrated manufacturing ecosystem around the new facility.
With the second plant, Kia’s combined investments across its two Indian manufacturing facilities, including supplier investments, are expected to reach approximately $5 billion.
Kia’s Existing Manufacturing Operations in Anantapur, India
Kia’s manufacturing presence in Andhra Pradesh dates back to 2017, when the company signed an agreement with the state government to establish its first Indian manufacturing facility.
The existing Anantapur plant started mass production in August 2019. It has since become an important production and export base for the South Korean automaker.
Among the models manufactured at the facility are the Kia Seltos and Sonet. These models both serve the Indian domestic market and international destinations.
The second plant is expected to build on the manufacturing infrastructure, supplier relationships and industrial ecosystem established through the existing facility.
The expansion also comes as international automakers continue increasing their investments in India. This is as they seek to capitalize on growing vehicle demand and the country’s position as the third-largest automotive market in the world.
What Does the Kia Andhra Pradesh Facility Expansion Mean for India’s Automotive Industry?
The proposed $2 billion investment represents another major commitment by an international automotive manufacturer to India’s industrial manufacturing sector.
Increasing annual production capacity to approximately 630,000 vehicles will strengthen Kia’s ability to serve the Indian market while expanding its export capabilities.
The development is also expected to support employment creation, with approximately 12,000 direct and indirect jobs projected across the manufacturing facility and associated supplier ecosystem.
Beyond employment, the additional manufacturing capacity could also generate opportunities for automotive component manufacturers and logistics providers. Construction contractors, industrial equipment suppliers and other businesses supporting vehicle production are also set to benefit.
Kia’s expansion also aligns with broader investment commitments by international automotive manufacturers in India. Suzuki Motor, the majority owner of Maruti Suzuki, announced plans in 2025 to invest approximately $8 billion in India over five to six years. Toyota and Honda have also committed to expanding their manufacturing ambitions in the country.
What Next for the $2 Billion Kia Manufacturing Plant in India?
Following the signing of the memorandum of understanding with the Andhra Pradesh government, the next major milestones will involve project planning and development approvals. Construction preparations and the establishment of the new manufacturing infrastructure are then expected to follow.
Production at the second Kia manufacturing plant in India is currently targeted to start in early 2030. However, further details concerning the construction schedule, engineering and construction contractors, equipment procurement, individual production lines and supplier commitments have not yet been made public.
Additionally, the proposed facility will be an important addition to Kia’s existing Anantapur manufacturing operations. It will potentially position Andhra Pradesh as an even more significant automotive manufacturing and export hub. This is while the state continues to see major investment across multiple sectors, including data centers and energy infrastructure with projects such as Reliance Industries’ planned $4.6 billion underground coal gasification plant.
As development progresses, attention will turn to the appointment of project contractors, construction commencement and the delivery of the additional 200,000-unit annual production capacity.
Project Fact Sheet for the Second Kia Manufacturing Plant in India
Developer: Kia India / Kia Corporation
Location: Anantapur, Andhra Pradesh
Investment: US$2 billion
Land area: 465 acres
Production capacity: Additional 200,000 vehicles annually
Existing annual capacity: 430,000 vehicles
Combined annual capacity after expansion: 630,000 vehicles
Vehicle types: Internal combustion engine and electric motor-powered vehicles
Expected employment: 12,000 direct and indirect jobs
Production commencement: Targeted for early 2030
Agreement: Memorandum of understanding with Andhra Pradesh government
Cost of combined Kia and supplier investment across two Indian facilities: US$5 billion
Existing facility: Anantapur plant, operational since August 2019
Stakeholders Involved in the Project
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Kia Corporation – Parent company and automaker.
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Kia India – Project developer and manufacturing operator.
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Andhra Pradesh State Government – Government partner and investment facilitation.
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Indian automotive component suppliers – Supporting manufacturing supply chain.
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South Korean automotive component suppliers – Supporting manufacturing supply chain.
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