Kia to invest $2 billion to set up 2nd plant in Andhra Pradesh
The new facility will add 2 lakh units of annual manufacturing capacity, taking Kia India’s combined capacity across both plants to over 6 lakh units.
- Nov 12, 2026,
- Updated Nov 12, 2026 1:55 PM IST
South Korean carmaker Kia on Thursday said it will invest $2 billion along with its suppliers to set up its second manufacturing plant in Andhra Pradesh.
The new facility will add 2 lakh units of annual manufacturing capacity, taking Kia India’s combined capacity across both plants to over 6 lakh units, the automaker said in a statement.
Spread across a combined 465 acres for Kia and its suppliers, the proposed facility is expected to generate approximately 12,000 more direct and indirect job opportunities, the statement said.
Kia has been among a few global automakers that have been able to make a dent in the world’s third largest passenger vehicle market. After entering the Indian market in 2019, Kia India, a subsidiary of South Korea’s Hyundai Motor Group, has been able to corner over 6% market share.
“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,” said Gwanggu Lee, Managing Director and CEO, Kia India.
“This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets,” Lee added.
With a cumulative investment of up to $5 billion across its two plants, Kia continues to deepen its presence in India, reinforcing the country’s strategic importance to Kia’s ambitions.
The announcement also comes four weeks after Kia’s parent Hyundai Motor Group said it will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity at Hyundai Motor India Ltd and Kia India while strengthening research and development, local sourcing and future mobility businesses.
South Korean carmaker Kia on Thursday said it will invest $2 billion along with its suppliers to set up its second manufacturing plant in Andhra Pradesh.
The new facility will add 2 lakh units of annual manufacturing capacity, taking Kia India’s combined capacity across both plants to over 6 lakh units, the automaker said in a statement.
Spread across a combined 465 acres for Kia and its suppliers, the proposed facility is expected to generate approximately 12,000 more direct and indirect job opportunities, the statement said.
Kia has been among a few global automakers that have been able to make a dent in the world’s third largest passenger vehicle market. After entering the Indian market in 2019, Kia India, a subsidiary of South Korea’s Hyundai Motor Group, has been able to corner over 6% market share.
“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,” said Gwanggu Lee, Managing Director and CEO, Kia India.
“This will further expand our Made-in-India footprint, strengthening our ability to serve both domestic and overseas markets,” Lee added.
With a cumulative investment of up to $5 billion across its two plants, Kia continues to deepen its presence in India, reinforcing the country’s strategic importance to Kia’s ambitions.
The announcement also comes four weeks after Kia’s parent Hyundai Motor Group said it will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity at Hyundai Motor India Ltd and Kia India while strengthening research and development, local sourcing and future mobility businesses.