Khyati Sharma 2026-11-12
Kia cars India has announced plans to invest approximately USD 2 billion (around ₹17,700 crore) in a second manufacturing facility in Andhra Pradesh, marking a major expansion of the South Korean automaker's manufacturing operations in India. The proposed investment is expected to strengthen the company's production capabilities, support its future product lineup and create approximately 12,000 employment opportunities.
The announcement was made by Gwanggu Lee, Managing Director and CEO of Kia India, at the CII Partnership Summit on November 12, 2026. The proposed facility will increase Kia India's total annual manufacturing capacity from the existing reported 4.3 lakh units to approximately 6.3 lakh vehicles.
The development highlights Kia's growing ambitions in the Indian automobile market, where the company is looking to expand its product portfolio and strengthen its position across multiple vehicle segments.
Kia currently operates its Indian manufacturing facility in Anantapur district, Andhra Pradesh. The existing plant began mass production in August 2019 and has played an important role in the company's domestic and export operations.
With the newly announced investment, Kia plans to establish an additional manufacturing facility in the state. However, the company has not yet disclosed the exact location of the proposed second plant, its construction schedule or the expected start of production.
The investment of approximately USD 2 billion represents a significant commitment to India's automotive manufacturing ecosystem. It is also expected to strengthen Andhra Pradesh's position as an important automobile manufacturing destination.
The new facility will help Kia prepare for higher production requirements as it expands its vehicle lineup and responds to growing customer demand.
One of the biggest benefits of the proposed investment will be the increase in Kia India's annual production capacity.
According to the announcement, the company's combined annual manufacturing capacity is expected to increase from approximately 4.3 lakh vehicles to 6.3 lakh units after the expansion.
Source: PTI report published November 12, 2026.
The proposed expansion represents an additional capacity of approximately 2 lakh vehicles annually.
This additional capacity will provide Kia with greater flexibility to manufacture more vehicles and support its future business plans. It could also help the company manage production requirements for different vehicle categories and powertrain technologies.
During FY2026, Kia India reportedly produced around 3.17 lakh vehicles. Of these, approximately 2.89 lakh units were dispatched to the domestic market, while 27,953 units were exported.
The proposed manufacturing expansion is expected to create approximately 12,000 employment opportunities.
The project could generate jobs across several areas, including:
Automobile manufacturing and assembly operations
Engineering and technical departments
Quality control and testing
Logistics and supply chain management
Production support and administration
Automotive component manufacturing
Apart from direct employment, the expansion could also benefit local suppliers, component manufacturers, logistics companies and other businesses associated with the automotive industry.
The investment is expected to provide a boost to Andhra Pradesh's industrial development and strengthen the state's automotive supplier ecosystem.
Kia established its first Indian manufacturing facility in Anantapur district in Andhra Pradesh. The plant started mass production in August 2019 and became a major part of the company's India strategy.
The facility manufactures vehicles for both domestic customers and international markets. It has supported Kia's growth through popular models such as the Seltos, Sonet and Carens.
According to Kia's official company information, the Anantapur facility has been an important contributor to its manufacturing and export operations.
The proposed second facility will further expand the company's manufacturing presence in Andhra Pradesh.
Kia's investment announcement comes at a time when the company is preparing to introduce more vehicles and powertrain technologies in India.
The automaker has been working towards expanding its presence across multiple segments, including compact SUVs, midsize SUVs, MPVs and electric vehicles.
Its existing Indian portfolio includes popular models such as:
Kia Seltos: A midsize SUV that plays an important role in the company's domestic sales.
Kia Sonet: A compact SUV competing in one of India's most competitive vehicle segments.
Kia Carens: A family-oriented MPV offering multiple seating configurations.
Kia Carnival: A premium MPV positioned towards the luxury end of the market.
Kia EV6: An electric vehicle representing the company's global electrification strategy.
Expanding manufacturing capacity will help Kia accommodate future product launches and potentially increase the availability of different models in the Indian market.
Kia has identified India as an important market for its global business. The company is looking to increase its domestic sales volumes and expand its market presence by introducing new products and technologies.
Its future strategy is expected to include a broader range of petrol, diesel, hybrid, CNG and electric vehicles.
The additional manufacturing capacity could support this multi-powertrain strategy by providing more flexibility in production planning.
The company has also been working towards expanding its dealership and service network to reach more customers across Indian cities.
With growing competition from manufacturers such as Hyundai, Tata Motors, Mahindra, Maruti Suzuki and Toyota, increasing production capacity will be important for Kia's long-term growth.
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