Kia India Plans About $2 Billion Second Plant in Andhra Pradesh

Kia India will set up a second manufacturing plant in Anantapur, Andhra Pradesh, with an investment of about $2 billion made together with its supplier partners. Managing Director and CEO Gwanggu Lee announced the plan on Thursday, November 12, 2026, at the 31st CII Partnership Summit in Visakhapatnam, and the company said it has signed a memorandum of understanding (MoU) with the Andhra Pradesh government for the project.

Kia said the new plant will have an installed capacity of 2 lakh vehicles a year. That takes Kia India's total annual capacity from 4.3 lakh to 6.3 lakh vehicles, a rise of about 47%. The project is expected to create around 12,000 direct and indirect jobs, and Kia said vehicle production is planned to start in early 2030.

Kia India's second plant at a glance

How Kia India's first Anantapur plant was built up

Kia's journey in Andhra Pradesh began in 2017, and its existing Anantapur plant started production in 2019. That plant has an annual capacity of 4.3 lakh vehicles. Kia said the first site, including its suppliers, covers 945 acres, was set up with an initial investment of $2.9 billion and supports 24,237 direct and indirect jobs.

The plant makes the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento. Kia said the new plant will carry out the same four processes as the first one: stamping, welding, painting and assembly. With both plants, Kia's cumulative investment is expected to reach up to about $5 billion, and the two sites with their suppliers will cover 1,410 acres.

What Kia India says the new plant will build

Kia said the second plant will make new models with both internal combustion engines and electric powertrains. Kia also said the plant will help it respond to customer demand with greater speed and flexibility.

Where Kia India stands after the Anantapur announcement

Kia India now runs one plant in Anantapur with a capacity of 4.3 lakh vehicles a year and has announced a second one that will add 2 lakh vehicles. Together with its suppliers, the company plans to invest about $2 billion in the new plant, which is expected to create around 12,000 jobs. Kia said production at the second plant is planned to begin in early 2030.

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