South Korean carmaker Kia India and its supply partners will invest $2 billion to set up a second manufacturing facility in Andhra Pradesh. The facility will add 2 lakh units of annual manufacturing capacity, taking Kia India’s combined capacity across both plants to 6.30 lakh units.
Spread across a combined 465 acres for Kia and its suppliers, the proposed facility located in Anantapur is expected to generate approximately 12,000 more direct and indirect job opportunities.
Kia has invested roughly $2.9 billion in its existing Anantapur facility which has a production capacity of 430,000 units per annum.
Kia India has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to support its expansion plan.
Last month, Hyundai Motor Group had committed investment of $15.5 billion from 2026 through 2032 in India following a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi on October 13, 2026.
Kia and Hyundai operate independently, but Hyundai is the parent company of Kia Motors. A large part of the investment is allocated towards expanding manufacturing capacity across Hyundai Motor India Limited (HMIL) and Kia India.
With a cumulative investment of up to $5 billion across its two plants, Kia said it continues to deepen its presence in India, reinforcing the country’s strategic importance to its ambitions while contributing to manufacturing development, employment generation, and the broader automotive ecosystem.
The fresh expansion by the manufacturer of Seltos and Sonet SUVs comes as it is operating at near full capacity at its existing plant to meet the growing demand. By dispatching 2,86,470 units between January and October 2026, up 21% year-on-year, the automaker surpassed its entire calendar-year 2025 sales in just 10 months. Kia averages around 28,000-30,000 units per month, with the Seltos being its main volume driver.
The upcoming facility will manufacture Kia’s internal combustion engines and battery-powered vehicles.
“Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains,” said Gwanggu Lee, Managing Director and CEO, Kia India.
He added, “ As we enter our next phase of growth, we remain committed to contributing to India’s automotive ecosystem and building on the strong foundation we have created here. This will further expand our Made-in-India footprint, strengthening our ability to serve both