Kia and suppliers plan US$2 billion second plant in Anantapur

Kia India and its suppliers plan to invest about US$2 billion in a second vehicle manufacturing plant in Anantapur, Andhra Pradesh, to expand production for domestic and export markets. The South Korean carmaker announced the project on 12 November 2026 at the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. The plant is expected to begin production in early 2030 and add capacity for 200,000 vehicles a year.

How much capacity will Kia add in Andhra Pradesh?

The second factory would raise Kia India’s combined annual manufacturing capacity from around 430,000 to 630,000 vehicles, an increase of about 47 per cent. Kia India signed a memorandum of understanding with the Andhra Pradesh government to support the expansion. The proposed site covers 465 acres, including space for supplier operations. Kia expects the project to generate around 12,000 direct and indirect jobs.

The US$2 billion figure covers investment by Kia and its supplier partners. The project would take cumulative investment across the two Indian facilities to about US$5 billion, including supplier investment. Kia works with both Indian and South Korean component suppliers.

What will Kia manufacture at its second Anantapur plant?

The factory will produce vehicles with internal combustion engines (ICE) and battery-electric vehicles (BEVs). It will carry out stamping, welding, painting and final assembly. Kia has yet to disclose which models will be assigned to the plant or how its capacity will be divided between the two powertrain types.

Kia India Managing Director and Chief Executive Officer Gwanggu Lee said the additional capacity would help the company respond to changes in demand and introduce new models for Indian and overseas customers. The existing Anantapur plant manufactures models including the Seltos and Sonet sport utility vehicles for both markets.

How does the expansion build on Kia’s vehicle exports?

Kia signed its first manufacturing agreement with Andhra Pradesh in April 2017 and began mass production in Anantapur in August 2019. The factory initially had capacity for about 300,000 vehicles a year. Hyundai Motor Group put the plant’s capacity at 431,000 units in October 2026, broadly in line with the rounded figure Kia used for the November expansion announcement.

Kia India produced around 317,000 vehicles in the financial year ended March 2026. It dispatched about 289,000 units domestically and exported 27,953. At the summit, Lee said the existing plant had exported more than 410,000 vehicles and kits to nearly 100 countries since it began operating. Kia has yet to announce a dedicated export volume or shipping gateway for the second plant.

FAQs

Where will Kia build its second plant in India?

The plant will be in Anantapur district, Andhra Pradesh, which also hosts Kia’s existing Indian factory. The proposed 465-acre site includes land for suppliers.

When will Kia’s second Anantapur plant begin production?

Kia is targeting early 2030. The factory is designed to add capacity for 200,000 vehicles a year.

Will the new Kia plant make electric vehicles?

Yes. Kia plans to manufacture battery-electric vehicles alongside models powered by internal combustion engines.