Kia India to set up second plant in Andhra Pradesh with $2 billion investment

Kia India has announced a major expansion in India. The company will set up a second manufacturing plant in Andhra Pradesh. Kia and its supplier partners will together invest a total of $2 billion in it.

The company made the announcement after signing a memorandum of understanding with the Andhra Pradesh government. The new plant is expected to raise production capacity and provide jobs to thousands of people. The company has once again expressed confidence in India's growing automobile market.

The proposed second plant will come up on about 465 acres in Andhra Pradesh. The company and its suppliers will put $2 billion into the project. The expansion will greatly strengthen the company's production set-up.

Kia's plant at Anantapur is currently operating. Through the second plant, the company will further strengthen its manufacturing network in India. The company has made clear that the combined investment in both plants will reach $5 billion.

The new plant will add about 2 lakh vehicles to Kia India's annual production capacity. Together with the existing capacity, the annual capacity of the two plants is expected to exceed 6 lakh vehicles. This will allow the company to meet rising demand for vehicles in the domestic market.

The plant will also help in building new models of internal combustion engine (ICE) and electric vehicles (EVs). The company aims to increase its capacity to export vehicles from India to overseas markets as well as supply the domestic market.

About 12,000 direct and indirect jobs are expected to be created by the new plant. This could benefit Andhra Pradesh's industrial growth and the local economy. Gwanggu Lee, Managing Director and Chief Executive Officer of Kia India, said India is a key centre of the company's long-term growth strategy.

Lee said the response and trust of customers towards the Anantapur plant helped the company decide on the second plant. The company is confident that the new investment will increase flexibility in production, allow customer demand to be met quickly, and give 'Made in India' products more opportunities in the global market.