In a major development for India’s automobile industry, Kia India has announced a massive $2 billion investment to set up its second manufacturing facility in Andhra Pradesh. The new plant will add 2 lakh units to the company’s yearly production capacity and is expected to create around 12,000 direct and indirect jobs.
The announcement was made by Kia India Managing Director and CEO Gwanggu Lee at the 31st CII Partnership Summit in Visakhapatnam on November 12, 2026. The company has also signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government for the proposed facility.
The new investment will take Kia India’s total annual production capacity to 6.30 lakh vehicles, compared to the existing capacity of 4.30 lakh units.
Kia’s Second Plant to Start Production in 2030
The proposed manufacturing facility will be spread across 465 acres, including land for Kia and its supplier partners. Production is expected to begin in early 2030.
The new plant will have an annual production capacity of 2 lakh vehicles. It will also support the manufacturing of upcoming models with different engine and powertrain options.
Some important details about the new facility include:
- Investment: $2 billion by Kia and its supplier partners.
- Land Area: 465 acres.
- Annual Capacity: 2 lakh vehicles.
- Expected Jobs: Around 12,000 direct and indirect opportunities.
- Production Start: Early 2030.
- Powertrains: Internal Combustion Engine (ICE) and Electric Vehicles (EVs).
The facility will have manufacturing operations such as stamping, welding, painting and final assembly. Kia has also indicated that the additional capacity will help it introduce new models and respond to demand in the Indian market.
Existing Anantapur Plant and Production Capacity
Kia started its manufacturing operations in India in 2019 with its Anantapur plant in Andhra Pradesh. The existing facility has an annual installed production capacity of 4.30 lakh vehicles and also handles exports to international markets.
The plant currently manufactures several models, including the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento.
Kia has also been using this facility as an export base. According to the company’s announcement, it exports around 1.1 lakh vehicles to nearly 100 countries.
Here is a comparison of Kia India’s existing and proposed manufacturing facilities:
| Particulars | Existing Plant | Second Plant |
|---|---|---|
| Location | Anantapur, Andhra Pradesh | Andhra Pradesh |
| Land Area | 945 acres | 465 acres |
| Annual Capacity | 4.30 lakh units | 2 lakh units |
| Investment | $2.9 billion | $2 billion |
| Production | Since 2019 | Early 2030 |
| Employment | 24,237 | Around 12,000 |
| Models | Existing Kia range | Upcoming ICE and EV models |
Kia’s Sales Performance in India
The investment comes after a strong sales performance for Kia India. The carmaker recorded its highest-ever monthly wholesale figure in October 2026, dispatching 33,462 vehicles. This was a 13.2% year-on-year increase.
Between January and October 2026, Kia dispatched 2.86 lakh vehicles, already crossing its total wholesale figure of 2.80 lakh units recorded during the entire 2025 calendar year.
The company has also received support from its supplier network. Three South Korean auto component manufacturers, Hwashin, Seoyon and Iwamet, have committed a combined investment of Rs 1,614 crore in Anantapur. Their projects are expected to create more than 1,400 jobs.