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Kia Announces $2 Billion Investment For Second Manufacturing Plant in Andhra Pradesh
The new plant, covering 465 acres, will enhance Kia's annual production capacity by 200,000 units, bringing the total to over 600,000 units. This expansion is projected to create around 12,000 jobs and strengthen the local automotive supply chain.
Updated Nov 12, 2026, 02:16 PM IST
Kia Announces 2 Billion Investment For Second Manufacturing Plant in Andhra Pradesh
Kia India is planning to significantly expand its manufacturing operations in the country with a proposed investment of $2 billion in a second manufacturing facility in Andhra Pradesh. The announcement comes following the signing of a Memorandum of Understanding (MoU) with the Andhra Pradesh government, marking a new phase in the South Korean automaker's India expansion plans.
Key Highlights:
Kia and its supplier partners will jointly invest $2 billion in a second manufacturing facility in Andhra Pradesh.- The proposed facility will be spread across 465 acres.
- The new plant will add 2 lakh units to Kia India's annual production capacity.
- The expansion is expected to generate around 12,000 direct and indirect jobs.
The investment will be made jointly by Kia and its supplier partners and is aimed at increasing production capacity while strengthening the company's manufacturing ecosystem in India.
Kia's Second Plant To Add 2 Lakh Units of Annual Capacity
The proposed manufacturing facility will be spread across a combined area of 465 acres, covering Kia's plant and facilities for its supplier partners. Once operational, the new facility is expected to add 2 lakh units of annual production capacity.
With this expansion, Kia India's combined annual manufacturing capacity across its two plants will exceed 6 lakh units. The company expects the project to create approximately 12,000 direct and indirect employment opportunities.
The development is also expected to support the growth of the local automotive supplier network and create additional opportunities across the manufacturing ecosystem.
Kia's Cumulative Investment in India To Reach $5 Billion
The second manufacturing facility will build on Kia's existing manufacturing presence in India and support its long-term growth plans. With the proposed expansion, the company's cumulative investment across its two manufacturing plants in the country will reach up to $5 billion.
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