Kia India to invest $2 billion in new plant at Anantapur in Andhra Pradesh

Kia India has announced an investment of $2 billion to set up a new manufacturing plant in Andhra Pradesh, as part of a push to strengthen its position in the Indian automobile market. The expansion will raise the company's production capacity from the current 4.3 lakh vehicles to 6.3 lakh vehicles a year. The project is expected to create about 12,000 new jobs.

The new plant will come up at Anantapur in Andhra Pradesh, and the company has signed a memorandum of understanding (MoU) with the state government for it. The plant and the facilities of supplier companies will be developed over 465 acres. The new project will give a major boost to the company's existing production system. Stamping, welding, painting and car assembly will be carried out at the plant.

Kia's existing Anantapur plant has an annual production capacity of 4.3 lakh vehicles. The new plant will be able to make 2 lakh more vehicles every year. Once both plants are operational, the company's total annual capacity will reach about 6.3 lakh vehicles. The company plans to build electric vehicles at the new plant along with petrol and diesel cars.

The project is likely to give momentum to Andhra Pradesh's automobile industry. The expansion by Kia and its supplier partners is expected to create about 12,000 direct and indirect jobs. Local supplier companies, auto component makers and the logistics sector could also benefit.

According to the company, production at the new plant is planned to begin in early 2030. Kia's Indian portfolio currently includes the Seltos, Sonet, Syros, Carens and Carnival. The new plant will give the company more room to build new ICE and EV models in India in the future. The expansion could also help increase exports of vehicles from India.