Kia and its suppliers plan to invest about $2 billion in a second manufacturing plant in India, with 200,000 units of annual installed capacity and about 12,000 direct and indirect jobs expected.

The South Korean automaker signed a memorandum of understanding with the Andhra Pradesh government. Kia scheduled commercial production at the new Anantapur site for early 2030.

What will Kia build in Andhra Pradesh?

The plant will produce new internal combustion engine (ICE) and electric vehicle (EV) models. Kia and its supply network will occupy a combined 465 acres at the planned Anantapur site, compared with 945 acres for the company’s first plant.

Operations will cover stamping, welding, painting and assembly. The scope spans body production and final vehicle assembly rather than an assembly-only operation.

The existing Anantapur site already produces:

• Seltos
• Syros (ICE and EV)
• Sonet
• Carens (ICE and CNG)
• Carens Clavis (ICE, EV and CNG)
• Carnival
• Sorento (ICE and HEV)

The current range covers ICE, EV, CNG and HEV powertrains. The second plant is intended to add new ICE and EV models and support a faster, more flexible response to customer demand.

How much capacity and employment does the project add?

The second plant will lift Kia India’s combined annual production capacity to more than 600,000 units. Kia’s existing Anantapur plant has annual capacity of 430,000 units, so the proposed 200,000-unit installation represents nearly half of the current base.

Kia’s first facility covers 945 acres, employs 24,237 people directly and indirectly and drew an initial $2.9 billion from Kia and its suppliers. The second project’s 12,000-job estimate is roughly half that workforce, and both employment figures include direct and indirect positions.

The new site’s 465 acres also represent about half the first plant’s 945-acre footprint. Its $2 billion commitment is smaller than the $2.9 billion initial investment at the first site, while the two plants together will provide more than 600,000 units of annual capacity.

What is the strategic logic?

Kia India managing director and CEO Gwanggu Lee said:

“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.

As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here.”

Lee tied the investment to three operating priorities: faster customer response, greater production flexibility and new ICE and EV introductions. Kia expects its cumulative investment in India to reach up to $5 billion after construction of the second plant.

Kia’s parent Hyundai Motor Group last month said it would invest $15.5 billion in India from 2026 to 2032. The group called India a “strategic core market for the group’s future growth, emerging market expansion, and next-generation automotive innovation.” The commitment spans seven years, while Kia’s second plant targets early 2030 production.

Last month, Hyundai Motor, Kia’s sister company, opened a new assembly plant in India. The sequence places both manufacturers in a broader Indian expansion, with Kia’s 200,000-unit project taking its combined Indian capacity above 600,000 units as Hyundai adds a new assembly site.