Kia India to Invest $2 Billion in Andhra Pradesh, Creating 12,000 Jobs
Kia India announces a $2 billion investment in Andhra Pradesh, promising to create 12,000 jobs and expand production capacity.
Visakhapatnam, November 12 (Daily Kiran) : Kia India has unveiled plans to invest $2 billion in a new manufacturing plant in Andhra Pradesh, a move expected to generate approximately 12,000 jobs. The announcement was made by Kia India’s Managing Director and CEO, Kwang-gu Lee, during the CII Partnership Summit in Visakhapatnam.
Lee expressed his enthusiasm about the expansion, stating, “I am pleased to announce that Kia is broadening its presence by establishing another manufacturing plant in Andhra Pradesh.” This new facility is anticipated to increase Kia India’s annual production capacity to 630,000 units.
Currently, Kia operates a manufacturing unit in Anantapur, established in 2017, with an annual capacity of 430,000 units. However, Lee did not specify a timeline for the new investment or when the additional capacity would come online.
In the fiscal year 2026, Kia India produced 317,000 units, with 289,000 units sold domestically and 27,953 units exported. This latest investment underscores Kia’s commitment to expanding its manufacturing footprint in India and highlights the growing significance of Andhra Pradesh in the automotive ecosystem.
The Anantapur plant, which began operations in 2019, has been a key part of Kia’s strategy, producing models for both domestic sales and export. The new investment is expected to strengthen the local supply chain and promote the development of supporting industries, including auto components, logistics, and skilled labor.
This announcement comes amid commitments from South Korean auto component suppliers to invest in Andhra Pradesh. Reports indicate that three auto component companies pledged investments totaling ₹1,614 crore this November, supplying parts to major South Korean automakers Hyundai and Kia. This will significantly bolster the state’s manufacturing base.
The three companies—Hwashin, Seoyon, and Evamet—have signed agreements with the Andhra Pradesh government to set up manufacturing units in Anantapur district. Collectively, these projects are expected to create around 1,400 jobs, further establishing Anantapur as an emerging hub for automobile and auto component production.
Overall, the investments from these three companies include ₹850 crore from one, ₹514 crore from another, and ₹250 crore from the third, leading to an anticipated total of 1,418 job opportunities.
