Kia and suppliers plan US$2 billion second plant in Anantapur

Kia India and its suppliers plan to invest about US$2 billion in a second vehicle manufacturing plant in Anantapur, Andhra Pradesh, to expand production for domestic and export markets. The South Korean carmaker announced the project on 12 November 2026 at the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. The plant is expected to begin production in early 2030 and add capacity for 200,000 vehicles a year.

The second factory would raise Kia India’s combined annual manufacturing capacity from around 430,000 to 630,000 vehicles, an increase of about 47 per cent. Kia India signed a memorandum of understanding with the Andhra Pradesh government to support the expansion. The proposed site covers 465 acres, including space for supplier operations. Kia expects the project to generate around 12,000 direct and indirect jobs.

The US$2 billion figure covers investment by Kia and its supplier partners. The project would take cumulative investment across the two Indian facilities to about US$5 billion, including supplier investment. Kia works with both Indian and South Korean component suppliers.

The factory will produce vehicles with internal combustion engines (ICE) and battery-electric vehicles (BEVs). It will carry out stamping, welding, painting and final assembly. Kia has yet to disclose which models will be assigned to the plant or how its capacity will be divided between the two powertrain types.

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