Kia to build a second Indian car plant in Andhra Pradesh with a $2 billion investment
Kia will set up a second manufacturing plant in Andhra Pradesh with its suppliers, adding 2 lakh cars a year of capacity, ICE and EV models, and about 12,000 jobs, with production due to start in early 2030.
Kia is doubling down on India. The carmaker announced on 12 November that it will build a second manufacturing plant in Andhra Pradesh, with Kia and its supplier partners investing USD 2 billion. Kia India managing director and CEO Gwanggu Lee made the announcement at the CII Partnership Summit, where the company signed a memorandum of understanding with the Andhra Pradesh government.
The numbers
- Investment: USD 2 billion by Kia and its suppliers.
- Land: about 465 acres, covering Kia and its supplier partners.
- New capacity: 2 lakh cars a year.
- Total capacity: from 4.3 lakh cars a year at the existing plant to about 6.3 lakh across both.
- Jobs: about 12,000 direct and indirect.
- Production start: early 2030.
Kia says its total investment in India across both plants will come to around USD 5 billion.
What will it build?
Kia has not named any models yet. What it has said is that the new plant will let it bring in more models with both internal combustion engine (ICE) and electric (EV) powertrains, and serve buyers in India as well as overseas markets. Lee called India central to Kia's long-term growth ambitions and said the second plant marks a significant new chapter for the company.
Where Kia stands today
Kia entered India in 2019 from its plant at Anantapur in Andhra Pradesh, set up in 2017 with an annual capacity of 4.3 lakh cars. Kia and its suppliers have invested about USD 2.9 billion there. In FY2026, the plant produced 3.17 lakh vehicles, with 2.89 lakh domestic dispatches and 27,953 exports. Kia now holds more than 6% of the Indian passenger vehicle market, the third-largest in the world.
The announcement comes a few weeks after Kia's parent, Hyundai Motor Group, said it would invest USD 15.5 billion in India between 2026 and 2032 across Hyundai Motor India and Kia India.
Why it matters to Indian buyers
More capacity usually means two things for buyers: shorter waiting periods and more models made locally, which helps keep prices competitive. A plant planned from the start for both petrol-diesel and electric cars also suggests Kia expects a much bigger EV line-up in India by the end of the decade. For Andhra Pradesh, 12,000 jobs and a deeper supplier base around Anantapur are the bigger story.
The FHM take
A 2030 start date means nothing changes in your driveway any time soon, and with no models named, the plant is a promise rather than a product. But companies do not commit USD 2 billion to a market they are unsure about. Kia has gone from newcomer in 2019 to a brand that needs a second factory, and that tells you how hard it is now pushing Maruti, Hyundai, Tata and Mahindra. More competition has rarely been bad news for the man buying the car.
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